The Spanish National Securities Market Commission (CNMV) has reminded financial influencers (‘finfluencers’) that they must be “prudent” when discussing crypto-assets on social media. “You must not use social media to spread false or misleading information about cryptocurrencies. You could be subject to a disciplinary proceeding for market abuse,” notes the newly published guide—‘Finfluencers: How to Act Responsibly’—which aims to help individuals who discuss investment and financial markets understand the implications of their actions.
The CNMV has also warned that ‘finfluencers’ cannot provide personalized advice without authorization and that they must fully understand the financial products or services they promote. Additionally, they must highlight the risks of these financial products or services, not just the potential returns: “Do not increase pressure or create a sense of urgency by saying things like ‘make money fast’.”
Regulatory Requirements and Market Abuse
The supervisor reminds that if an individual wishes to provide personalized investment advisory services, they will need an authorization granted by their national competent authority—the CNMV in the Spanish case.
According to the CNMV, all communications published on social media “can carry risks related to market abuse” if they transmit:
- “False or misleading signals regarding the supply, demand, or price of a financial instrument.”
- “Set the price at an abnormal or artificial level,” including the dissemination of rumors.
Furthermore, it notes that “failing to disclose conflicts of interest regarding the financial instruments referenced in an investment recommendation could be considered an indicator of transmitting false or misleading signals, or setting the price at an artificial level to profit from the communication’s impact on the price of such instruments.”
Consequently, professionals and experts who issue recommendations must disclose if they hold a net long or short position exceeding 0.5% of the total issued share capital referenced in the recommendation.
