Spain's regulatory body, the National Securities Market Commission (CNMV), has initiated its first-ever cryptocurrency infringement case against local technology provider Miolos.
The CNMV announced the commencement of "sanctions proceedings" against Miolos for alleged crypto non-compliance in a statement released on Wednesday. This decision was reached during a session held on October 31, 2023, by the agency's executive committee.
The regulatory action stems from Miolos' purported violation of crypto promotion rules during two extensive advertising campaigns conducted between September and November 2022. Miolos is accused of advertising crypto assets as investment opportunities without incorporating necessary information and warnings about the associated risks. Additionally, the tech provider is alleged to have failed to comply with administrative control measures for cryptocurrency advertising by neglecting to submit prior communication.
It's crucial to note that the CNMV emphasized that the statement does not prejudge the final outcome of the investigation. Rodrigo Buenaventura, the head of the CNMV, highlighted in a financial meeting that this move should serve as a reminder for crypto businesses in Spain to align with the regulations stipulated in the new framework.
"This is the first sanctioning proceeding to be opened for non-compliance with the circular regulating the advertising of cryptoassets."
Spain introduced new regulations on January 17, 2022, through the Circular of the CNMV, specifically addressing the advertising of crypto-assets as investments. The circular delineates the entities and assets within its scope, allowing the CNMV to oversee the advertising of specific crypto-assets classified as unregulated products to date.
Furthermore, the CNMV disclosed an ongoing investigation into whether social media platform X, formerly known as Twitter, violated crypto advertising rules.
"In recent days, we have detected advertisements on X by a non-authorized financial company," Buenaventura noted.
According to the new regulations, businesses promoting crypto assets must inform the CNMV in advance about the content of their campaigns. Campaigners are required to notify the CNMV within 10 days of advertising to an audience exceeding 100,000 people.
