CNMV sets crypto-asset advertising regulations

Circular 1/2022, of January 10, 2010, of the National Securities Market Commission, regarding the advertising of crypto-assets presented as investment objects.

Its objective is to develop the rules, principles and criteria to which crypto-asset advertising activity must be subject. Specifically, it will delimit the objective and subjective scope of application, as well as the powers of the CNMV in matters of supervision and control of the advertising of cryptoassets, in accordance with the provisions of Article 240 bis of the revised text of the Securities Market Law approved by Royal Legislative Decree 4/2015, of October 23.

This Circular consists of seven rules, one final provision and two annexes.

• The first and second rules, referring to object and definitions.
• The third rule establishes the objective scope of application of the Circular and delimits the activities that are considered as advertising activities. On the other hand, it determines that certain professional activities ("white papers", publications on cryptoassets issued by analysts or independent commentators and which are not sponsored or promoted), or certain unique non-fungible assets or those which, due to their characteristics, are not susceptible to being the object of investment, shall not be considered as advertising activities.
• The fourth rule establishes the subjective scope of application. It will include cryptoasset service providers when they carry out advertising activities and advertising service providers, as well as any other natural or legal person who, either on its own initiative or through third parties, carries out an advertising activity on cryptoassets.
• The fifth rule refers to the format and content requirements to be met by advertising campaigns, as well as the information on the risks of the product being advertised that must be included in commercial communications, highlighting the requirement that advertising must be clear, balanced, impartial and not misleading, in the case of those commercial communications and advertising pieces that provide information on the cost or profitability of a crypto-asset, these must contain clear, exact, sufficient and updated information, in a manner appropriate to their nature and complexity, the characteristics of the media used and the target audience to which they are addressed.
• The sixth rule refers to the supervisory functions of the CNMV, distinguishing between mass campaigns aimed at the general public and other advertising actions.
• The seventh rule establishes the prior notification regime to which mass advertising campaigns must be subject. Obligated parties must provide, at least ten working days prior to the execution of the campaign, a document of prior notice of mass advertising campaign, which shall be in accordance with the model that the CNMV includes for this purpose on its website, as well as the other documentation detailed in the aforementioned rule.
• The Annexes to this Circular contain the general principles and criteria to which advertising must conform, as well as the minimum content of the information on the nature and risks to be provided to potential investors in cryptoassets. The Board of the CNMV, in accordance with its powers, following a report from the CNMV's Advisory Committee and having heard the Council of State, has approved the Circular.

The circular will enter into force one month after its publication in the BOE.