The CNMV will control the advertising of cryptocurrencies: an express government reform will equalize them to bonds or investment funds
The state thermometer is going to start to control the cryptocurrency fever. The Government is going to reform the regulation on the advertising of investment products and services to include cryptocurrencies among the assets over which the National Securities Market Commission (CNMV) can exercise its supervision, as the newspaper has advanced Five days and they have confirmed sources of the Economic Affairs and Digital Transformation to Engadget.
In this way, the regulation will equalize these financial assets with others such as investment funds or bonds, among other products, and will allow the CNMV to request the withdrawal of advertising on investments in cryptocurrencies if the supervisory body considers that the communication is misleading or fraudulent. A request that will be mandatory within three days.
According to information from Cinco Días, the Government will address this reform urgently in today’s extraordinary Council of Ministers, which will also approve aid for 11,000 million euros for companies affected by the coronavirus pandemic.
A recurring lawsuit
In this way, the Government meets the demands on the regulation of these financial assets that both the CNMV and the Bank of Spain have been doing for several years. In a joint statement launched by both entities at the beginning of February warned of the high risk of investing in cryptocurrencies for citizens “Due to its extreme volatility, complexity and lack of transparency.”
With this regulatory reform, the CNMV may submit to authorization all advertising on cryptocurrencies launched in Spain. Until now, the control over the companies that sell cryptocurrencies in our country is limited, since without a specific regulation that includes it, the intervention capacity of the supervisory bodies is very limited.
With this initiative, the Government of Spain gets ahead of European legislators, which continue to negotiate a community rule that regulates this type of currency.