- 4 February 2022
- Posted by: Cryptovalues
- Category: Cryptovalues News, Fiscal
Few days ago, the CNMV, acronym of Comisión Nacional del Mercado de Valores, Spanish financial regulatory body, assimilable to our Consob, with the will to regulate in the awareness of the strength of the crypto sector, has issued a circular that will be in force from February 17th, which will regulate the advertising of investments in crypto and according to which the ads related to cryptocurrencies will have to be “clear, balanced and fair”, as well as provide sufficient information on the risks related to such investments.
Almost at the same time, similar initiative from England, where the UK’s Financial Markets Authority (FCA) published a 186-page document entitled.
“Strengthening our rules on the financial promotion of high-risk investments, including cryptocurrencies.”
This initiative assimilates the promotion of cryptocurrencies within the scope of financial promotions legislation, subject to the supervision of the “Financial Conduct Authority” in line with the same standards observed for equities, securities and insurance products.
The desire to regulate stems from the increasingly evident spread of the crypto phenomenon, which sees around 2.3 million people in the UK believed to be in possession of crypto assets.
While the popularity of cryptos appears to be increasing significantly, it also appears that, according to FCA research, understanding of cryptos is declining with some users who may not fully understand what they are buying.
The current regulations actually only apply to licensed financial operators, but these do not include those who create or distribute cryptocurrency.
The idea therefore seems to be to extend the same rules to those promoting crypto investments, changing the classification of high-risk investments and the path that leads the retail investor to such assets.