The Spanish securities regulator (CNMV) has warned investors against placing funds in crypto-related companies. Montserrat Martinez Parera, vice president of the organization, said that lack of control is one of the causes of the fall of the crypto exchange FTX, and that anyone who considers crypto as an investment must be very careful because lack of regulation in the Region.
Spanish Securities Regulator CNMV Warns Against Crypto-Related Investments
Spanish securities regulator CNMV has given its opinion on the recent fall of FTX, one of the top three crypto exchanges globally. During the inauguration of a public congress on November 25, Montserrat Martinez Parera, vice president of the institution, said that one of the things that allowed events involving FTX to develop was the lack of control exercised. by some countries.
Martinez Parera also cautioned investors against embarking on this type of investment journey, and noted that they should approach any crypto-related opportunity with extreme caution, given that this ecosystem lacks more regulation and control. She also called on interested parties to wait until MiCA, the cryptocurrency framework being discussed in Europe, is approved in order to have more clarity on how investments in crypto assets will be regulated.
Gamification of investments and advertising
Martinez Parera also criticized the way some platforms advertise their financial investment services, trying to make them look like a game, especially in the cryptocurrency industry.
About this process, she Explain:
We talk about gamification, but these are more typical techniques of video games, basically there is an addictive component, and they promise you certain gains in a very short period of time: we know that it is not sustainable and we have seen it in the field of crypto assets.
Martinez Perera’s review also touches on how some of these cryptocurrency platforms deliberately employ the help of influencers to advertise their services, often delivering big returns to their audience on platforms like Instagram or Twitter. She said:
It amazes me when sometimes certain “influencers”, in a video of less than a minute, explain to you how to become rich.
This has been at the center of the organization this year, with influencers such as Andres Iniesta, a national football player, reprimanded by the regulator for promoting a cryptocurrency exchange to his fans. The CNMV established crypto promotion laws in January that prohibit influencers with more than 100,000 followers from launching a crypto-related ad campaign without notifying the group ten days before the launch.
What do you think of the CNMV’s opinion on crypto regulation and the fall of FTX? Tell us in the comments section below.
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