The Spanish Financial Market Supervisory Authority, the CNMV, Issues a Warning Regarding Crypto-Related Investments
In light of the recent failure of FTX, one of the top three cryptocurrency exchanges on a global scale, the Spanish authority in charge of the supervision of securities markets, the CNMV, has expressed its viewpoint on the matter. At the beginning of a public congress on November 25, Montserrat Martinez Parera, the vice president of the organization, claimed that a lack of supervision exercised by some nations was one of the factors that allowed the events concerning FTX to grow.

Martinez Parera also cautioned investors against embarking on this kind of investment journey, and she remarked that they should approach any opportunity related to cryptocurrencies with extreme caution, given that this ecosystem is still lacking in regulation and control. Martinez Parera also warned investors against embarking on this kind of investment journey. She also urged those who are interested to wait until MiCA, the cryptocurrency framework that is now being negotiated in Europe, is established so that they may have greater clarification on the manner in which investments in crypto assets would be regulated.

Investing in Gameification and Public Relations
Martinez Parera was also critical of the manner in which certain platforms market their financial investment services by making them appear as though they were a part of a game. This criticism was directed specifically at the cryptocurrency business.

She went on to explain the following procedure:

We use the term gamification, but the techniques are more typical of video games. At the core, there is an addiction component, and they promise you certain earnings in a very short space of time. This is not sustainable, as we know from our experience in the field of crypto assets, and we use the term gamification to describe it.

Martinez Perera's criticism also addresses the manner in which some of these cryptocurrency platforms purposefully enlist the assistance of influencers to advertise their services. These influencers typically entice their audiences on platforms such as Instagram and Twitter by promising large yields. Martinez Perera's criticism addresses this practice. She proclaimed, "

It never ceases to surprise me how certain people who call themselves "influencers" can give you financial advice in a video that lasts for less than a minute.

Influencers such as Andres Iniesta, a national soccer player, was reprimanded by the regulatory body this year for his promotion of a cryptocurrency exchange to his fans. This was the primary focus of the organization this year. Influencers who have more than 100,000 followers are not allowed to run a crypto-related marketing campaign without telling the CNMV about it ten days before to the campaign's launch. These restrictions were enacted in January by the CNMV and prohibit the promotion of cryptocurrencies.

What are your thoughts on the position taken by the CNMV on the regulation of cryptocurrencies and the demise of the FTX? Tell us in the part below devoted to comments.