Spain will regulate influencers promoting cryptocurrency

The image is by James Bareham.

Spain has announced new rules for how social media users can advertise. The Spanish National Securities Market Commission will require people and companies to give it at least 10 days' notice before running campaigns for cryptocurrencies. The rules apply to people with more than 100,000 subscribers who are paid to promote the digital currency.

According to the news agency, advertisers of cryptocurrencies will need to give the content of their upcoming campaigns to the CNMV, and include warnings about the risks of what they are selling. The rules are designed to make sure that audiences are aware of risks.

The CNMV has used social media before. In November, it replied to a message from soccer player Andrés Iniesta, warning him that cryptocurrencies, being unregulated products, carry some significant risks. It was not clear if Iniesta had been paid for his promotion.

The combination of cryptocurrencies and social media advertising has been problematic. A proposed class action suit was filed earlier this month against KimKardashian and others for promoting the currency. The agency will keep a closer eye on what exactly is being offered under the new rules.