April 19, 2024
Spanish Regulator Signals Investigation into Fraudulent Crypto Ads on X Platform
Latest Cryptocurrency News

Spanish Regulator Signals Investigation into Fraudulent Crypto Ads on X Platform

The principal securities market regulator in Spain, the National Stock Market Commission (CNMV), has indicated a potential investigation into cryptocurrency advertisements. The head of CNMV, Rodrigo Valbuena, emphasized the responsibility of networks, such as X (formerly Twitter), in taking action against investment promotions by unlicensed entities and urged companies to adhere to local laws.

During a speech at the annual Deloitte conference for the Spanish financial sector on Nov. 8 in Madrid, Valbuena disclosed that the identified crypto asset promotions on X involved “illegal use of the image of some Spanish actors and the design and identity of a national media to try to obtain data and money from investors.”

Valbuena reiterated that Spanish legislation holds “internet companies, media, and social networks” accountable for combating investment promotions by unlicensed entities, with potential sanctions for noncompliance. He assured a thorough response from the CNMV, stating, “I can assure you that we will scrupulously exercise all our capacities, supervisory powers, and our supervisory and sanctioning powers in these cases.”

Additionally, Valbuena announced the CNMV’s intention to bolster its resources, with a 15% increase in staff, to address emerging challenges. On Nov. 8, the CNMV initiated its first case against a technology provider, Miolos, for violating crypto promotion rules in Spain. Sanctioning proceedings were initiated against Miolos for two “massive” advertisement campaigns in September and November 2022, where the company allegedly omitted risk warnings and failed to seek authorization from the CNMV.

Spain is actively planning to adopt the Markets in Crypto-Assets Regulation (MiCA), the first comprehensive European Union crypto framework, even before the mandated July 2026 deadline. This move aims to provide legal certainty and investor protection in the evolving crypto landscape.

Image by freepik

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