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Spanish Authorities Warn Social Media Networks to Halt Unregistered Investment Platforms From Advertising

Spanish securities regulator, CNMV, has asked large search engines and social media networks to cease offering advertising services to platforms that aren't registered to offer...
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Spanish securities regulator, CNMV, has asked large search engines and social media networks to cease offering advertising services to platforms that aren’t registered to offer financial or investment services. If these companies fail to address the issue, the regulator stated that it would promote regulation.

Spanish Regulator addresses Unregistered Platform Advertising Problem

The Spanish securities regulator CNMV is concerned about the unregistered advertising space big internet companies have given to their services. Rodrigo Buenaventura was the president of the organization. He spoke about this topic at an event called “Supervisor Cryptoactives and Advertising: Good Practice in the Sector” where he explained the CNMV’s position on the matter.

Buenaventura stated the following:

It is not right that search engines or social media companies broadcast advertising that includes paid advertisements. They are allowing ads from pirate entities to be displayed on their platforms, which are publically warned about.

Buenaventura also stated that these companies put their customers at risk by advertising such services, leading to various scams.

The organization has identified many of the fraud cases in Spanish courts, which have caused millions in damages and hundreds of thousands of dollars in losses, as cases that were not authorized platforms. Buenaventura believes that these problems could be avoided if platforms had used the lists that the CNMV or other European regulators regularly issue to prohibit platforms from using advertising services.

He explained that he meant:

We ask them to make a commitment through self-regulation that their pages and networks do not spread deceit or other crimes in return for an increase in their income.

The Next Step in Regulation

To protect users of these services, the Spanish regulator will allow these companies some time to incorporate the changes. It also stated that it will take legal action against companies if they fail to meet its demands.

El Mundo stated that the CNMV sources said it would take only weeks to propose this regulation. These companies claim that technical problems, permission from their parent companies, time to analyze and put into practice the measures have stopped them from complying with these requirements.

The CNMV has already published a regulation that requires crypto-related ads campaigns targeting over 100K users to inform the regulator in advance.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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