Italy Cracks Down on Finfluencers Promoting High-Risk Crypto

TLDR

• Italy’s CONSOB has reinforced a warning from ESMA targeting social media influencers promoting financial products.
• The ESMA factsheet states that investment promotions must follow EU financial regulations even on social media.
• Influencers can face legal consequences if they offer unlicensed investment advice or promote unauthorized crypto products.
• Disclaimers like “this is not financial advice” do not remove legal responsibility for financial content shared online.
• CONSOB urged influencers to verify if the platforms or products they promote are authorized and regulated.

Italy’s financial regulator CONSOB has issued a direct alert to social media finance influencers, stressing that European rules apply to promotional crypto and high-risk investment content, after the European Securities and Markets Authority (ESMA) released a factsheet warning about illegal advertising and unlicensed investment advice.

The regulator emphasized that misleading or unlicensed investment content, especially through social media, remains subject to full regulatory enforcement and penalties. CONSOB also underlined that influencers who promote unauthorized crypto schemes could become responsible for facilitating fraud.

ESMA Warns That Finfluencer Promotions Must Follow Investment Rules

The ESMA factsheet released last Thursday stressed that “promoting a financial product or service isn’t like promoting shoes or watches.” It stated that rules covering investment advice, marketing, and transparency fully apply to content shared online, even by non-professionals.

The authority warned that promoting contracts for difference (CFDs), forex, volatile crypto assets, and unregulated crowdfunding may expose consumers to full capital loss. It explained that disclaimers such as “this is not financial advice” do not remove legal obligations or liability.

ESMA reminded influencers that investment tips may qualify as regulated advice and require proper licensing. It also said content creators must clearly disclose any paid promotion or commercial partnerships, or risk breaching advertising rules.

The factsheet follows ESMA’s 2021 warning under the Market Abuse Regulation, which targeted misleading social media posts. At the time, the regulator highlighted that non-disclosure of conflicts of interest could amount to market abuse. It clarified that violations could attract fines of up to €5 million for individuals and even higher for firms.

CONSOB Highlights Enforcement and Urges Finfluencers to Verify Authorization

Italy’s CONSOB emphasized ESMA’s message and called on influencers to verify the legitimacy of entities they promote. It also advised the public to ignore “get rich quick” schemes that often involve unauthorized or risky investments.

The regulator warned that creators could face legal action for amplifying fraud or non-compliant products, even without direct intent. It made clear that content posted online is not exempt from regulatory standards or national enforcement.

CONSOB’s reminder fits into a broader effort across Europe to enforce social media financial compliance. The statement reiterates that being a non-professional does not shield individuals from liability. Those posting investment-related content are expected to understand and follow all legal requirements.

France has already introduced a Responsible Influence Certificate for influencers promoting financial products. The scheme, created by the AMF and ARPP, includes training and testing requirements for eligibility. It applies to those partnering with member brands for crypto or financial ads.

In the UK, the Financial Conduct Authority finalized social media promotions guidance in 2024. It also led a public campaign fronted by “Love Island” personality Sharon Gaffka. The effort warned against illegal crypto ads and unauthorized promotions by unqualified influencers.

Global Cases Show Growing Legal Risks for Crypto Promotion Online

The United States Securities and Exchange Commission fined Kim Kardashian $1.26 million in 2022. The penalty followed her Instagram promotion of EthereumMax tokens without disclosing a $250,000 payment.

That same year, a separate lawsuit targeted a group of influencers linked to FTX promotions. The complaint alleged that they misled followers about the exchange, which later collapsed.

The lawsuit sought $1 billion in damages from high-profile YouTubers and online personalities. It marked a growing legal response to unregulated crypto hype.

The ESMA factsheet and CONSOB warning show a clear effort to curb illegal investment promotions. Regulators continue to expand oversight on content shared by social media influencers. Fines, lawsuits, and stricter guidelines are shaping how online finance content is governed in Italy and across Europe.

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