Spain has announced that influencers who advertise cryptocurrency in the country, will need to include warnings and disclose potential risks in their promotional material. This rule applies to any influencer with 100,000 followers or more.
The influencers would also need to notify the Spanish National Securities Market Commission (CNMV) 10 days before running advertisements or promotions on any crypto assets. CNMV would also require them to hand in the complete details for the campaigns before they go live.
“If influencers weren’t covered there would be a backdoor to avoid regulation," the Financial Times reported, quoting CNMV chief Rodrigo Buenaventura.
"This is new terrain, for us and for them, and there will be moments of friction but that always happens when you bring in rules for something that wasn’t regulated before.”
Recently, media personality Kim Kardashian and boxer Floyd Mayweather found themselves in hot water, after they were targeted by a lawsuit accusing them of a "pump and dump" scheme.
The celebrities along with other social media influencers promoted the cryptocurrency EthereumMax, driving its prices to an all time high before the inevitable crash.
The lawsuit accused them of making false and misleading statements and profiting at the cost of their followers and fans.