Spanish Watchdog Initiates Sanctions Against Miolos for Violating Crypto Ad Rules

The National Securities Market Commission (CNMV) of Spain has opened its first crypto infringement case against local technology provider Miolos.

CNMV, the Spanish securities markets regulatory body, released an agreement on Wednesday, announcing “sanctions proceedings” against Miolos over crypto non-compliance. The agency’s executive committee agreed upon the sanctions during a session held on October 31, 2023.

According to the regulator, Miolos violated crypto promotion rules stemming from two “massive” ad campaigns between September and November 2022.

The tech provider advertised crypto assets as an investment object without “incorporating information and warnings about the risks of cryptoassets.” The Commission said Miolos failed to comply with the administrative control measures for cryptocurrency advertising by not submitting prior communication.

Spain’s stock market supervisor noted that the statement did not prejudge the final outcome of the investigation. In a financial meeting held on Wednesday, Rodrigo Buenaventura, the supervisor’s head, said that this should serve as a reminder for crypto businesses in the country to comply with the rules set out in the new regulations.

“This is the first sanctioning proceeding to be opened for non-compliance with the circular regulating the advertising of cryptoassets.”

Spain’s Crypto Ad Rules

On 17 January 2022, the Spanish Official State Gazette (BOE) published the new Circular of the CNMV on the advertising of crypto-assets as investments. The circular defines the types of entities and assets included in its scope. This way, the CNMV can supervise the advertisement of certain types of crypto-assets, which are deemed unregulated products thus far.

CNMV also said that it has opened an investigation into whether social media X, formerly Twitter, flouted crypto advertising rules.

“In recent days we have detected advertisements on X by a non-authorized financial company,” said Buenaventura.

Businesses marketing cryptoassets must inform the CNMV beforehand about the content of campaigns, the regulator notes. The campaigners have 10 days to notify CNMV of adverts that target over 100,000 people.