Anyone planning to launch a mass advertising campaign targeting at least 100,000 people must get in touch with regulators first — 10 days in advance.
Spain is introducing tough new measures surrounding crypto advertisements.
Under the measures, advertisers will need to provide "clear, balanced, impartial and non-deceptive content" on the risks involved with investing in digital assets — along with a disclaimer that the industry isn't regulated, may be unsuitable for everyday investors, and that they could lose all their money.
Crypto exchanges will fall under the toughened rules unveiled on Monday, alongside influencers who are being paid for their posts. The regulations are going to come into force on Feb. 17.
Explaining the rationale behind these measures, the National Securities Market Commission said:
"Cryptocurrencies have a growing presence in the financial system, and while their development in the Spanish market presents important opportunities, it also poses challenges in the area of investor protection, since there is currently no comprehensive regulation to adequately address the risks associated with these assets."
"Publications issued by independent analysts or commentators that are not sponsored or promoted" are going to be exempt from these new rules.
However, promotions related to crypto trading, buying specific coins, investment advice, portfolio management or earning an income using cryptocurrencies falls under the guidance.
"If influencers weren't covered there would be a backdoor to avoid regulation. This is new terrain, for us and for them, and there will always be moments of friction but that always happens when you bring in rules for something that wasn't regulated before."
He also suggested that Spain has decided to act now rather than wait for the European Union to intervene, a process that could take a couple more years.