Spanish authorities are cracking down on cryptocurrency advertisements promoted by social media influencers, in an effort to gain control over the widely unregulated market.

Spain has become the first country in the EU to impose regulations on cryptocurrency advertising. According to the Financial Times, which cited official government documents published on Monday, influencers will now have to disclose their intentions to post cryptocurrency advertisements on their social media accounts to authorities at least 10 days in advance, and must warn followers of the digital token’s potential risks.

“We are very excited about how this will bring some order to how crypto is promoted, not just through traditional media but also through influencers,” Rodrigo Buenaventura, the head of Spain’s national securities market commission told the Financial Times. As per the new rules, influencers must reveal if they received compensation for the post, and any public statements must be “clear, balanced, impartial, and non-misleading,” while outlining that cryptocurrencies are not regulated and investments could lead to substantial financial losses.

Influencers boasting over 100,000 followers who do not follow the government’s new rules could face fines of up to €300,000. The regulatory crackdown also applies to cryptocurrency companies themselves, as well as any PR companies they may hire.

Information for this briefing was found via the Financial Times. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.