ESMA finfluencer regulation prompts new CONSOB warnings on crypto promotions and social media finance

European authorities are stepping up oversight of online finance content, as finfluencer regulation becomes a central tool to curb risky crypto and investment hype.

CONSOB amplifies ESMA warning to social media finance influencers

Italy’s securities regulator CONSOB, the Commissione Nazionale per le Societa e la Borsa, has given new prominence to a fresh factsheet from the European Securities and Markets Authority (ESMA) on social media investment content. In a communication released on Monday, the watchdog underlined that European Union rules on investment recommendations and advertising fully apply to crypto‑related and so‑called “get rich quick” material.

Moreover, CONSOB drew attention to ESMA‘s document for social media finance influencers, or “finfluencers”, published on Thursday. The factsheet reminds content creators that, in ESMA’s words, “promoting a financial product or service isn’t like promoting shoes or watches”, stressing that online reach does not dilute legal responsibility.

The communication warns that pushing contracts for difference (CFDs), forex, futures, certain crowdfunding products and volatile cryptocurrencies can mean losing 100% of the capital invested. However, ESMA clarifies that influencers remain legally responsible for their posts even when they are not finance professionals and even if they repeat information from third parties.

ESMA’s factsheet also insists that any paid partnerships must be clearly labeled as advertising and not disguised as neutral opinion. Short disclaimers such as “this is not financial advice” do not neutralize regulatory obligations, and providing personalized investment tips without a licence may qualify as regulated investment advice under EU law.

Crypto scams and the need to verify authorization

The CONSOB notice echoes ESMA’s messaging and urges users to distrust aggressive “get rich quick” claims around trading, crypto tokens or complex derivatives. Furthermore, it calls on influencers to verify whether the firms and platforms they mention are properly authorized to offer investment services, in order to avoid unintentionally facilitating crypto scams and unlawful promotions.

According to the Italian regulator, this heightened scrutiny is intended to protect retail investors who increasingly rely on social media for investment ideas. That said, the notice makes clear that responsibility sits not only with platforms and issuers but also with individual creators who profit from paid promotions or referral schemes.

The new focus on online promotions means that financial influencer liability is no longer a theoretical risk for creators operating across the European Union. As ESMA explains, national regulators can assess whether content amounts to an investment recommendation, an advertisement or potential market abuse, depending on how it is framed and disclosed.

ESMA and EU regulators tighten oversight of social media investment content

CONSOB’s intervention forms part of a broader European clampdown on influencers shaping investment decisions through videos, posts and livestreams. ESMA first addressed investment recommendations on social media in an October 2021 public statement under the Market Abuse Regulation, highlighting that misleading posts and undisclosed conflicts of interest could qualify as market abuse or non‑compliant investment recommendations.

The authority notes that breaches can carry administrative fines of up to 5 million euros, or around $5.8 million, for individuals, with even higher ceilings for firms. In addition, in some European Union member states, certain market abuse offences can be prosecuted as criminal cases, exposing influencers and companies to potential criminal sanctions.

Other national authorities have already tested dedicated tools for managing social media financial promotions. In 2023, France’s Autorite des marches financiers and the advertising regulator Autorite de Regulation Professionnelle de la Publicite (ARPP) launched a Responsible Influence Certificate. This training and testing scheme is required for influencers who want to collaborate with ARPP member brands on financial promotions, including those involving crypto assets.

In the United Kingdom, the Financial Conduct Authority finalized its guidance on social media financial promotions in 2024. Later that year, it fronted a public campaign with “Love Island” personality Sharon Gaffka to warn that unauthorized, misleading or non‑compliant investment and crypto promotions could amount to illegal financial promotions under UK law.

Celebrity and creator crackdowns highlight global trend

This regulatory tightening in Europe mirrors a wider backlash against celebrity‑driven hype around risky financial products internationally. Regulators have increasingly taken aim at high‑profile endorsements that fail to meet disclosure and suitability standards, particularly where volatile crypto tokens or speculative schemes are involved.

In 2022, the United States Securities and Exchange Commission fined Kim Kardashian $1.26 million for unlawfully touting EthereumMax (EMAX) tokens on Instagram without properly disclosing a $250,000 payment for the promotion. However, the settlement also underlined that even one‑off posts by celebrities can trigger securities law obligations.

A separate class action filed in 2023 targeted a group of so‑called “FTX influencers”, seeking $1 billion in compensation. The plaintiffs alleged that a number of prominent YouTubers and other online personalities misled followers by promoting products linked to the collapsed FTX exchange, reinforcing concerns about unauthorized investment promotions across digital platforms.

Within the European Union, the expanding body of ESMA finfluencer guidance and national initiatives signals that the era of lightly regulated creator marketing for complex investments is ending. The combination of administrative fines, potential criminal liability and reputational damage is meant to push influencers and brands toward stricter compliance.

What finfluencers and investors should expect next

For creators, the latest CONSOB communication effectively confirms that finfluencer regulation will be enforced alongside traditional market rules, even when content appears informal or entertainment‑driven. Moreover, they must clearly flag advertising, avoid misleading performance claims, and refrain from giving individualized investment advice without proper authorization.

For retail users, regulators recommend greater skepticism toward sensational claims about guaranteed returns, leverage or exclusive trading strategies circulated on major platforms. That said, the strengthened enforcement approach does not ban financial content outright; instead, it aims to ensure that crypto and other high‑risk products are promoted within the same legal framework that applies to more traditional investments.

Overall, CONSOB, ESMA and other national regulators are moving to align the fast‑moving world of online finance content with long‑standing investor protection standards. As enforcement actions and high‑profile cases accumulate, both influencers and their audiences are likely to face a more transparent but tightly monitored digital investment landscape.