The National Securities Market Commission (CNMV) of Spain has taken action against Miolos S.L, a cryptocurrency promoter, for alleged violations of crypto promotion rules in the country. This marks the first such case in Spain, emphasizing the regulator’s commitment to enforcing cryptocurrency regulations.
Spain’s principal financial regulator, the National Securities Market Commission (CNMV), has taken significant steps to address non-compliance with cryptocurrency promotion regulations in the country. In a press release issued on November 8, the CNMV announced the initiation of “sanctioning proceedings” against Miolos S.L for its involvement in two “massive” cryptocurrency advertising campaigns in September and November 2022.
The CNMV alleges that Miolos failed to adhere to cryptocurrency regulations established by the CNMV circular issued in January 2022. Specifically, Miolos is accused of not including risk warnings in its promotional materials and failing to submit its campaigns for authorization by the CNMV. According to the circular, companies are required to provide promotional materials for review at least ten days before their intended publication.
First case of CNMV sanctioning for crypto promotion violations
This recent action by the CNMV represents the first instance in which the regulator has initiated sanctioning proceedings against a cryptocurrency promoter for non-compliance with crypto promotion regulations. The CNMV’s objective is to underscore the importance of adhering to these regulations and to remind the public and industry participants of their necessity. It is essential to note that Miolos has the right to defend itself against these allegations, in accordance with due process.
Spain’s move to enforce cryptocurrency regulations comes in the context of its commitment to implement the European Union’s Markets in Crypto-Assets (MiCA) framework. Spain has expressed its intention to implement MiCA even before the deadline for EU member states to establish legal certainty and investor protection in the cryptocurrency space.
As Spain takes steps to oversee crypto promotion, it can draw valuable lessons from the United Kingdom’s experience. In the UK, regulators’ strong stance on enforcing crypto promotion rules led to challenges for businesses in complying with these regulations and the exit of several major international players from the market.
Initially, the Financial Conduct Authority (FCA) extended the technical compliance deadlines for businesses to 2024 due to the complexities involved. Subsequently, the FCA issued “finalized non-handbook guidance” to provide further clarification on compliance requirements.
Spain’s CNMV is navigating a path that balances the need for regulation and oversight in the cryptocurrency sector with the potential challenges faced by businesses in adapting to these regulations. Achieving this balance is crucial to creating a regulatory environment that fosters innovation and protects investors.
