- Trending
- Comments
- Latest
Italy’s securities regulator has warned social media influencers they can be held legally liable for promoting cryptocurrencies without proper disclosures, with potential fines reaching €5 million for violating EU investment rules, according to a notice issued Monday by CONSOB.
In a notice issued Monday, CONSOB amplified a newly published factsheet from the European Securities and Markets Authority (ESMA), making clear that Crypto risk rules cover cryptocurrencies just as strictly as traditional financial products.
ESMA’s message was blunt: promoting a crypto token or trading platform is “not like promoting shoes or watches.”
At the heart of the warning is accountability. According to CONSOB, influencers who promote contracts for difference (CFDs), forex, futures, crowdfunding investments, or volatile cryptocurrencies may expose followers to losses of up to 100% of their capital—and remain legally responsible for the content they publish.
The regulator stressed that Crypto risk rules apply even if creators are not licensed finance professionals.
“Influencers remain responsible for what they communicate, regardless of the medium used,” CONSOB said, echoing ESMA’s position. Short disclaimers such as “this is not financial advice,” regulators emphasized, do not cancel out legal obligations under EU law.
ESMA’s factsheet further underlines that paid partnerships must be clearly and visibly labeled as advertising. Failing to disclose compensation, or offering personalized investment tips without authorization, could amount to unlawful investment advice under Crypto risk rules.
CONSOB’s notice also urged social media users to be skeptical of “get rich quick” claims and called on influencers to verify whether the platforms and operators they promote are authorized. The regulator warned that careless promotion could facilitate crypto scams—an area where Crypto risk rules are increasingly being enforced.
An ESMA spokesperson said the guidance aims to “protect retail investors from misleading information and hidden conflicts of interest,” adding that crypto’s volatility makes transparency especially critical.
The Italian move fits into a wider European campaign to bring order to online financial promotion. ESMA first addressed finfluencer behavior in an October 2021 statement under the Market Abuse Regulation, warning that misleading posts, selective disclosure, and undisclosed conflicts could constitute market abuse. Those principles now sit squarely within today’s Crypto risk rules.
The consequences for breaching Crypto risk rules can be severe. ESMA has noted that violations of investment promotion rules can carry administrative fines of up to €5 million ($5.8 million) for individuals, with significantly higher penalties for companies. In several EU jurisdictions, market abuse offenses can even lead to criminal prosecution.
Legal experts say the renewed focus on finfluencers reflects regulators’ frustration with the speed and scale of crypto marketing on social platforms.
“Crypto promotions spread faster than traditional ads, and that amplifies risk,” said a Milan-based securities lawyer. “Regulators are making it clear that Crypto risk rules apply no matter how informal the medium looks.”
Italy is not acting alone. Other European regulators have already rolled out tailored measures targeting influencers. In 2023, France’s Autorité des marchés financiers (AMF), together with advertising watchdog ARPP, launched a Responsible Influence Certificate.
The program requires influencers who want to promote financial products—including crypto—to undergo training and testing before working with ARPP member brands, reinforcing compliance with Crypto risk rules.
Across the Channel, the UK’s Financial Conduct Authority (FCA) finalized its social media financial promotions guidance in 2024.
The watchdog later partnered with “Love Island” star Sharon Gaffka in a public awareness campaign warning that unauthorized or non-compliant crypto promotions could be illegal. The FCA said the initiative was designed to help creators understand their obligations under UK financial law, which closely mirrors EU Crypto risk rules in practice.
The regulatory push has been shaped by high-profile enforcement actions against celebrities and online creators.
In 2022, the US Securities and Exchange Commission fined Kim Kardashian $1.26 million for unlawfully promoting EthereumMax (EMAX) tokens on Instagram without properly disclosing a $250,000 payment. The case has been repeatedly cited by European regulators as a cautionary tale supporting stricter Crypto risk rules.
In another landmark case, a 2023 class action lawsuit sought $1 billion in damages from a group of so-called “FTX influencers,” alleging they misled followers by promoting products tied to the now-collapsed crypto exchange. While the case is US-based, European watchdogs view it as evidence of the real-world harm caused when Crypto risk rules are ignored.
By amplifying ESMA’s guidance, CONSOB has sent a clear signal: Europe’s creator economy is now firmly within the scope of Crypto risk rules. Regulators are no longer treating social media as a gray area but as a core battleground for investor protection.
For finfluencers, the message is simple. Transparency, authorization checks, and clear ad disclosures are no longer optional—they are legal requirements. As crypto marketing continues to evolve, regulators say enforcement will only intensify.
“Crypto is not outside the law,” ESMA noted in its factsheet. With Italy now reinforcing that stance, Crypto risk rules are poised to reshape how digital assets are promoted across Europe’s social media landscape.
