The CNMV published Circular X / 2021 that has resulted in the modification of the Securities Market Law in its article 240 bis., all with the purpose of regulating the advertising activity on crypto assets, and most notably, regulating the mechanisms and control procedures. The provisions of the Circular are applicable to advertising activity on crypto assets that are the object of investment, and with respect to it, the following should be highlighted:

The Circular establishes, among others, the need to include certain warning messages in commercial advertising, accompanied by a link or instructions on how to access more information and a description of the risks derived from this type of assets, and must comply with strict limitations in terms of profitability references and with numerous requirements in terms of content, formats and media.

In the exercise of its supervisory function, the CNMV may request information from obliged subjects in order to assess compliance with the Circular, among other information, information related to the general data of the campaign, as well as specific information on all advertising pieces, the CNMV being able to demand the cessation of advertising or its rectification. Regarding massive advertising campaigns, and advertising campaigns with a certain impact on the target audience, they must be previously communicated to the CNMV.

The objective of the Circular is to ensure that advertising on crypto assets gives a clear, balanced, impartial and non-misleading image, all with the aim of alleviating the general ignorance of concepts and risks that prevails in the sector.

You can read it here.