The CNMV Opens First Case for Violating Crypto Promotion Rules in Spain
The National Securities Market Commission (CNMV) in Spain has taken action against a company for violating crypto promotion rules, marking the first case of its kind in the country. The CNMV initiated “sanctioning proceedings” against Miolos S.L for two massive advertisement campaigns in September and November 2022.
Miolos is accused of not complying with cryptocurrency regulations established by the CNMV circular from January 2022. The company failed to include risk warnings and did not seek authorization from the CNMV for its campaigns, as required by the circular. Companies are obligated to submit promotional materials for review at least ten days before publication.
This move by the CNMV serves as a reminder to the public about the importance of following and respecting crypto promotion regulations. The regulator also emphasized Miolos’ right to defend itself against the allegations.
Spain’s Intentions and Lessons from the UK
Spain is aiming to implement the first comprehensive European Union crypto framework, Markets in Crypto-Assets (MiCA), ahead of schedule. This initiative is intended to provide legal certainty and investor protection within EU member states.
However, Spain can learn from the experience of the United Kingdom, where regulatory pursuit of crypto promotion violations led to challenges for businesses and the departure of major international players from the market. The Financial Conduct Authority (FCA) had to extend compliance deadlines and issue additional guidance to clarify requirements.
Hot Take: Prioritizing Compliance and Regulation
The actions taken by the CNMV demonstrate a growing emphasis on compliance and regulation within the crypto industry. As countries work towards implementing comprehensive frameworks, it is crucial for businesses to adhere to established regulations and seek authorization for promotional activities. This approach aims to create a more stable and secure environment for crypto-related activities while protecting investors from potential risks.
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