Among the warnings of the CNMV, there are the announcements of pirate companies that take advantage of the fever for what the institution calls the “fashionable asset”: cryptocurrencies.
As we know – we all experience it daily – there are many pirate companies or financial beach bars that are doing their thing and filling themselves with money with ads on search engines such as Google or social networks calling people to invest in them, be it with cryptocurrencies, with Forex trading and other types of investments. We know that innocent people fall for their game and do not realize they have fallen for a scam until they lose their money. And, although the victims file complaints, these companies continue to advertise in the most flamboyant way on social networks.
But now the National Securities Market Commission (CNMV) of Spain seeks to put an end to advertising in search engines and social networks of the so-called ‘financial beach bars’.
This was reported by the president of the CNMV, Rodrigo Buenaventura, during the event ‘Supervisor, Cryptoactives and Advertising: good practice in the sector’, organized by the Spanish Association of Fintech and Insurtech (Aefi). There, Buenaventura has warned that a large part of the criminals and those responsible for financial fraud They are taking advantage of the cryptocurrency boom to swindle potential investors, as they have historically done with the “fashion asset” of the moment.
Unjustifiable, says Buenaventura
“In my opinion, it is unjustifiable that companies that broadcast paid advertising on social networks or search engines profit by admitting advertisements from pirate entities, which are publicly warned as ‘financial bars’. And, even more so that, by doing so, they endanger the savings of their users and customers, some of whom fall into this type of fraud”, Bonaventure assures.
In fact, the CNMV said that will appeal to the Government of Spain to request a new regulation to directly ban and sanction platforms such as Google, Twitter, Meta or Instagram if they refuse to stop advertising about such entities not recognized by the supervisor for investment in Spain. It is worth clarifying that first he is asking them to self-regulate and that, if they do not, then he will resort to normative actions.
Warning to search engines and networks
Buenaventura’s words were broadcast on the CNMV’s Twitter account:
— CNMV (@CNMV_MEDIA) April 5, 2022
In another tweet today, in addition, the CNMV again warns about crypto as an investment:
— CNMV (@CNMV_MEDIA) April 6, 2022
He also shared a list of organizations and companies with false or unverifiable identities, which claim to be registered with international entities and are not.
— CNMV (@CNMV_MEDIA) April 6, 2022
according to account The world, The CNMV has verified that the vast majority of fraud cases that are currently being investigated or judged in the National High Court, with economic damage of hundreds of millions of euros, They were initially noticed as entities not authorized by the CNMV.
Circular on advertising
The measure is one more of those that the CNMV andn your fight against scams. In January, a circular on crypto advertising came into force that enables the Commission itself to control massive crypto advertising campaigns, considering as such those that target 100,000 people or more. This surveillance also extends to influencers who promote investment promotion content.
Before, in November 2021 the CNMV he had issued a warning, both about advertising and about investing in cryptocurrencies.
The world account that, in his speech, Buenaventura reported that, since the entry into force of the Circular, A total of 118 advertising pieces have been reviewed in a set of 20 files. Of these, two thirds are direct communications from the entities themselves, while the rest correspond to the CNMV’s own initiative of supervision. Likewise, since mid-February the CNMV has received more than a dozen queries related to the subject.
As we said, the CNMV released today a list of some entities not registered with international supervisors and that are passing themselves off as if they were. In the ready there are several companies related to crypto.
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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.