The National Securities Market Commission (CNMV) of Spain has commenced disciplinary action against Spanish technology company Miolos S.L. (Miolos) for violating crypto promotion rules that may mimic similar rules laid out by the UK FCA. The regulator alleges that Miolos launched two campaigns in 2022 that violated the CNMV’s requirement to submit material ten days before publication.
Miolos also allegedly excluded warnings about the risks of crypto. The CNMV issued a circular with the promotion rules in January 2022.
“This is the first sanctioning proceeding to be opened for non-compliance with the circular regulating the advertising of cryptoassets.”
The financial regulator said the enforcement action was “to remind the public of the need to follow and respect” its regulations. In addition to the Miolos case, the regulator is investigating four other potential infringements.
Spain plans to enforce the European Union’s Markets in Crypto-Assets (MiCA) bill earlier than most countries. It wants to benefit from the bill’s legal clarity and investor protection laws.
On Wednesday, US crypto and stockbrokerage Robinhood announced plans to launch in the EU because of the clarity that European rules afford. Robinhood’s CEO, Vlad Tenev, said that clear rules would allow it to offer “select” crypto assets to millions of customers.
In the meantime, the European Banking Authority is developing liquidity requirements for stablecoins ahead of the launch of MiCA. The consultation paper came days after the Bank of England and the UK Financial Conduct Authority issued proposals for stablecoin payment systems.
The FCA’s new crypto promotion rules only allow registered and authorized companies to release crypto promotions. The regulator has only authorized a handful of companies to release advertising material on behalf of other companies.
The move has seen many crypto companies exit or be added to the regulator’s alert list for non-compliance. Among those seeking help from authorized firms are Coinbase and OKX.
A 2019 opinion piece in the Financial Times said the FCA’s detailed rules sometimes conflict with the general rules of doing business fairly and treating customers well. The relative dearth of companies that have been able to comply with its advertising rules could be a lesson for Spain’s regulator to avoid burdensome rules that confuse stakeholders.
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