Spanish securities regulator CNMV warns about crypto investments; Caution Urges After FTX Fall – Regulating Bitcoin News

The Spanish securities regulator (CNMV) has warned investors against putting funds in crypto-related companies. Montserrat Martinez Parera, vice president of the organization, stated that lack of control is one of the reasons for the downfall of the crypto exchange FTX and that anyone looking at crypto as an investment must be very careful due to the lack of regulation in the area.

Spanish securities regulator CNMV warns about crypto-related investments

The Spanish securities regulator, CNMV, has given its opinion on the recent downfall of FTX, one of the top three crypto exchanges worldwide. At the inauguration of a public congress on November 25, Montserrat Martinez Parera, vice president of the institution, stated that one of the things that allowed the events involving FTX to develop was the lack of control by some countries.

Martinez Parera also cautioned investors against embarking on this type of investment journey, noting that they should approach any crypto-related opportunity with extreme caution, given that this ecosystem still lacks regulation and control. She also asked interested parties to wait for MiCA, the cryptocurrency framework currently being discussed in Europe, to be approved in order to gain more clarity on how investments in crypto assets will be regulated.

Investment gamification and advertising

Martinez Parera also criticized the way some platforms advertise their financial investment services, trying to make them look like they are part of a game, especially in the cryptocurrency industry.

She explained about this process:

We use the term gamification, but they are techniques more typical of video games, deep down there is an addictive component and they promise you certain incomes in a very short time: we know this is not sustainable and we have seen it in cryptoassets.

Martinez Perera’s criticism also addresses the way some of these cryptocurrency platforms intentionally use the help of influencers to advertise their services, often offering large returns to audiences on platforms such as Instagram or Twitter. She declared:

It amazes me when some “influencer” in a video of less than a minute tells you how to get rich.

This has been the focus of the organization this year, with influencers such as Andres Iniesta, a national soccer player, reprimanded by the regulator for his promotion of a cryptocurrency exchange to fans. The CNMV established crypto promotion laws in January that prohibit influencers with more than 100,000 followers from running a crypto-related advertising campaign without informing the group about it ten days before its start.

What do you think of the CNMV’s opinion on crypto regulation and the FTX demise? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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