Cryptocurrency advertisements have been at the forefront of controversy for a long time now. In the past, political leaders from England, India, Australia, and other countries had spoken out against broadcasting cryptocurrency advertisements. Most of these advertisements were from cryptocurrency exchanges that wanted to increase their user base. In India, for example, the Prime Minister urged the CEOs of leading crypto exchanges not to market their products aggressively. As a result, the number of crypto commercials on public TV decreased gradually. In the UK, a few crypto exchanges, including Coinbase, were prohibited from marketing their products in public spaces. Singapore followed suit recently and banned all Digital Token Providers from advertising on any public medium or space. In Spain, Comisión Nacional del Mercado de Valores (CNMV) proposed a new set of regulations for crypto advertisements.
The CNMV now mandates all crypto advertisements to be balanced and fair. That means there can’t be any use of hyperbole in the tone of the commercials. At the same time, any ad with a viewership of 100,000 people or more will have to report the same to the CNMV at least 10 days prior to the broadcast.
With these measures, the Spanish government plans to increase public awareness about crypto and ensure that no one is scammed or duped. Crypto advertisements can often be an exaggeration of the fact. They often ignore the risks and volatility of the market while selling their respective products. The new mandates make it compulsory for all ads to mention the risks of investing in cryptocurrency.
