The CNMV adapts to MiCA: changes in cryptocurrency advertising regulation in Spain

On 27 December 2024, the Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores, CNMV) issued a Circular that repeals a previous 2022 Circular on the advertising of cryptocurrencies as investment products. Since MiCA establishes clear and directly applicable rules for the advertising of these assets, the previous Spanish regulations were no longer necessary.  

T

his repeal reflects the need to avoid duplication and align with the new regulations, which came into force on 30 December, following four years of negotiations. 

What is MiCA and how does it redefine the crypto world? 

MiCA (Markets in Crypto-Assets) is a regulation approved by the European Union in 2023 that establishes a regulatory framework for crypto-assets and related services. Its aim is to provide greater security for investors and a more transparent market environment. MiCA is not a directive but a directly applicable regulation in all Member States. This means it does not require transposition into national laws and applies uniformly across the EU. 

This regulation addresses several key aspects of crypto assets, including: 

• Issuance of Crypto-Assets: MiCA regulates the conditions under which crypto-assets can be issued, setting requirements for transparency and oversight for those seeking to market these assets. 

• Crypto-Asset services: MiCA governs the services provided in relation to crypto-assets, such as exchange, custody, and management. It ensures that service providers operate under clear and strict rules. 

• Investor protection: MiCA introduces new regulations aimed at safeguarding investors, particularly retail investors, by ensuring transparency of information and control over the risks associated with crypto-assets. 

• Crypto-Asset advertising: One of MiCA’s most significant areas is the regulation of crypto-asset advertising. The regulation stipulates that advertising must be impartial, clear, non-misleading, and consistent with the information provided in the crypto-asset white papers. 

With the entry into force of MiCA, the national regulations of each EU Member State must adapt, as the rules established by this regulation will take precedence over local regulations. 

The context of Crypto-Asset advertising in Spain 

Prior to MiCA’s enactment, the CNMV issued Circular 1/2022 in 2022, specifically regulating the advertising of crypto assets as investment products in Spain. This regulation was driven by the growing popularity of crypto-assets and the risks they posed to retail investors, particularly with the proliferation of exchange platforms facilitating access to these assets. Without specific regulations, the CNMV identified that consumers faced risks due to a lack of clarity in information and misleading messages present in advertising campaigns. 

Circular 1/2022 imposed a series of requirements on companies wishing to advertise crypto assets. These companies were required to be transparent about the inherent risks of investing in crypto-assets and to provide clear and comprehensible information. Additionally, control mechanisms were established, such as the prior notification of mass advertising campaigns to the CNMV, to ensure compliance with the requirements set out in the regulation. 

However, as the European Union progressed in creating a common regulatory framework for crypto-assets, the need arose to review national regulations, such as Circular 1/2022, to align them with the new MiCA regulation, which provides a broader and more uniform set of rules applicable across all EU countries. 

The repeal of Circular 1/2022 

On 28 December 2024, the CNMV officially repealed Circular 1/2022 with the publication of Circular 1/2024. This new circular states that, since the MiCA Regulation establishes common rules across the European Union, maintaining additional national regulation for crypto-asset advertising is unnecessary. This repeal marks a significant shift in Spain’s regulation of crypto assets, as it removes several control mechanisms that were previously unique to national legislation. 

One of the most significant changes is the removal of the requirement for prior notification of mass advertising campaigns for crypto-assets. Under Circular 1/2022, companies launching mass advertising campaigns for crypto assets were required to notify the CNMV in advance, allowing the supervisory authority to review the campaigns before their dissemination. With the repeal of this obligation, advertising campaigns can now proceed without undergoing this review process, although they will still be subject to the general principles established by MiCA. 

Implications of the circular’s repeal 

The repeal of Circular 1/2022 brings several significant changes to the crypto-asset market in Spain. On a practical level, the removal of the prior notification requirement allows companies to act more swiftly when launching their advertising campaigns. However, it also places greater responsibility on companies to ensure their advertising messages comply with the principles established by MiCA. The CNMV retains the authority to oversee and, if necessary, sanction campaigns that fail to meet regulatory requirements. 

Despite the repeal of Circular 1/2022, the draft law on the digitalisation and modernisation of the financial sector retains the possibility for the CNMV to impose some form of administrative control over crypto-asset advertising. This suggests that, even though the regulation of crypto-asset advertising now falls under MiCA’s common framework, future national-level amendments could affect how advertising campaigns are managed. 

The repeal of Circular 1/2022 by the CNMV and the entry into force of the MiCA Regulation represent a step towards greater harmonisation in the regulation of crypto assets within the European Union. With the implementation of common rules, stronger investor protection is ensured, and a more transparent and secure market environment is fostered. Companies must adapt to this new framework by complying with European regulations and ensuring their advertising campaigns are clear, transparent, and consistent with the available information. As crypto-asset regulation continues to evolve, closely monitoring potential updates at both European and national levels will be essential. 

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