Spain’s top financial regulator, the National Securities Market Commission (CNMV), has taken action against Miolos Desarrollos S.L., a crypto firm, for violating the country’s advertising and promotion rules related to cryptocurrencies. The CNMV announced these disciplinary proceedings through a press release published on November 8, 2023.
Miolos is accused of breaching regulations set out in a CNMV circular from January 2022 in two separate advertising campaigns conducted in September and November 2022. The company allegedly omitted risk warnings and failed to seek approval from the CNMV for these campaigns.
The nation’s regulation on crypto promotion, as per the January Circular, requires cryptocurrency companies to provide clear disclosure of the risks associated with digital assets and submit their advertising materials to the regulator for review at least ten days before publication.
According to the regulator, the outcome of the disciplinary proceedings is still open, and Miolos can defend itself against these allegations through legal channels.
This case marks the first enforcement action in connection with Spain’s new cryptocurrency promotion regulations. The CNMV acknowledges that the industry’s overall compliance with these rules has been reasonably satisfactory. However, the regulator aims to emphasize the importance of strict adherence to these regulations by cryptocurrency companies operating within Spain.
In a broader European context, many countries have introduced similar laws as they prepare for the implementation of the European Union’s comprehensive crypto regulatory framework, Markets in Crypto-Assets (MiCA), which was passed into law earlier in the year.
The United Kingdom’s Financial Conduct Authority (FCA), for instance, established similar laws in June, which officially took effect on October 8, 2023. These rules mandate that crypto firms provide transparent risk warnings and ensure their advertisements are free from misleading information. Importantly, they apply to cryptocurrency businesses operating in the UK, regardless of their location, as long as they provide services to UK citizens. It is worth noting that several crypto firms have chosen to exit the UK in response to these regulations, although the FCA has extended the grace period for compliance until 2024.
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