Clampdown on crypto ads: A one-off or a new phase of global regulation?
Over the last week, regulators in three major jurisdictions across two continents introduced new rules governing cryptocurrency-related promotions and advertisements. Citing consumer risks associated with digital asset investments, authorities in the United Kingdom, Singapore and Spain tightened the requirements around crypto firms’ marketing messaging and customer recruitment practices. While some experts view this emerging trend as a sign of a new global phase of cryptocurrency regulation, questions about the efficiency and universal applicability of this approach persist.
In the United Kingdom, Her Majesty’s Treasury issued a report summarizing the results of a public consultation on crypto-asset promotions, published in July 2020, as well as the government’s further steps in bringing such promotions within the regulatory perimeter. The key takeaway here is that crypto-related marketing messages are to be included in the scope of the Financial Promotion Order, meaning that the same rules will apply to them as those governing promotions of traditional financial products.
The National Securities Market Commission, Spain’s chief securities regulator, announced a new set of requirements that will apply to digital asset firms targeting 100,000 people or more with their ads, as well as those relying on social media influencers to promote their products and services.
In both the U.K. and Spain, regulators will require crypto promotions to abide by the principles of clarity and fairness while also prominently featuring risk disclosures. Ads’ sponsors will also have to either seek pre-approval (U.K.) or notify the authorities (Spain) of the upcoming campaigns.
The guidelines issued by the Monetary Authority of Singapore feature
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