Spain's primary financial regulator, the National Securities Market Commission (CNMV), has launched a case against technology provider Miolos for allegedly violating the country's cryptocurrency promotion rules. In a press release on November 8, the CNMV revealed that it initiated "sanctions procedures" against Miolos in September and November 2022, along with two "large-scale" advertising companies. The regulator accused Miolos of non-compliance with cryptocurrency regulations introduced in January 2022. Specifically, the company allegedly failed to issue risk warnings and did not seek authorization from the CNMV for its activities. The regulations mandate companies to provide promotional materials for inspection at least 10 days before publication.
This marks the first instance of the CNMV initiating sanctions procedures for non-compliance with cryptocurrency promotion regulations. The press release emphasized the regulator's intent to remind the public of the importance of adhering to and respecting these regulations. Spanish authorities also affirmed Miolos' right to defend itself against the charges. Spain has expressed its intention to adopt the first comprehensive EU crypto framework, the Market Regulation in Crypto-Assets (MiCA), even ahead of the deadlines set by other EU member states. This move aims to provide legal certainty and investor protection.
In the absence of MiCA, Spain can learn from the UK's experience in regulating cryptocurrency promotion. The rush by UK regulators to enforce cryptocurrency promotion rules has resulted in widespread non-compliance and the departure of major international players from the market. Initially, the Financial Conduct Authority (FCA) extended the technical deadline for compliance to 2024. However, challenges persisted, leading to the issuance of "finalized non-manual guidance" by the FCA to clarify compliance requirements once again.
