Spanish Securities Regulator Warns of Potential Action Against X
The Spanish securities regulator, the National Stock Market Commission (CNMV), has suggested that it may take action against X, formerly known as Twitter, for allowing unauthorized financial services providers to run crypto ads on its platform. Rodrigo Valbuena, president of the CNMV, expressed concern over several non-compliant ads detected on X’s platform at the Deloitte-ABC financial meeting. According to Valbuena, these ads illicitly used the image of Spanish actors and impersonated a national media outlet to deceive investors.
Spain’s Regulation and Responsibility of Social Networks
Spain’s stock market regulation requires communications service providers and social platforms to take measures to prevent the spread of ads contracted by unlicensed entities. These platforms are responsible for ensuring that their clients are not “pirate” operators listed by the CNMV and are authorized to provide financial services. Valbuena emphasized that the CMNV would sanction any violations and stressed that social network companies should not accept unauthorized advertisements from companies designed to deceive their followers.
The CNMV has closely monitored cryptocurrency service providers’ use of traditional and non-traditional media for advertising. In 2022, it issued rules for mass cryptocurrency advertisement campaigns, leading to 210 interventions, 1327 advertising piece reviews, 196 information requests, and sanctions against a single cryptocurrency campaign.
Hot Take: Spanish Authorities Crack Down on Unauthorized Crypto Ads
The Spanish securities regulator’s warning to take action against social networks like X for allowing unauthorized crypto ads sends a strong message about the country’s commitment to regulating cryptocurrency advertising. It demonstrates a proactive approach in holding platforms accountable for verifying the legitimacy of financial service providers behind ad campaigns. This move could set a precedent for other countries grappling with similar issues in regulating crypto advertising on social media platforms.
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