SOCIAL media giant X (formerly Twitter) has been hit with a hefty €5 million fine in Spain after breaking the law on advertising financial products, including cryptocurrencies.
The Spanish Securities and Exchange Commission (CNMV) announced today that it imposed the massive €5.8 million penalty for ‘a very serious and ongoing violation’ of the country’s strict financial advertising rules.
The investigation, launched back in November 2023, followed the discovery of ads promoting cryptocurrencies posted on X by an unlicensed financial firm called Quantum AI. The company, which has no official approval to offer financial services in Spain, had been peddling digital assets to unsuspecting users.
The CNMV said the social media platform failed to comply with regulations that came into force in March 2023, requiring strict oversight on the advertising of financial products. The new rules were introduced in response to growing concerns about rogue financial companies targeting consumers online.
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Under the regulations, websites, social media platforms, and other digital media outlets must ensure that any financial product ads come from legitimate and licensed companies. They must also check that advertisers are not included on blacklists of illegal firms.
Rodrigo Buenaventura, the then-president of the CNMV, explained when announcing the probe that platforms like X were under increased scrutiny to prevent ‘harmful’ and ‘misleading’ promotions of unregulated investment schemes.
This latest fine is just the tip of the iceberg. Spanish authorities have been cracking down on rogue crypto ads in recent months, as the country works to bring digital asset promotions under control. Just last year, the country’s crackdown on illegal crypto operations ramped up, with many platforms now under the watchful eye of regulators.
The €5 million penalty adds to the growing list of legal headaches for X since Elon Musk took control of the platform in 2022.
Critics have long warned that the billionaire’s laissez-faire approach to content moderation could open the door to exploitation by bad actors, and this latest incident is fuelling concerns about the platform’s ability to manage its advertising rules.
X has yet to comment publicly on the fine, but it’s clear that the stakes are getting higher for social media platforms operating in Europe. Musk’s company now faces increased scrutiny not only for its content but for how it handles financial ads aimed at vulnerable consumers.
As regulators tighten the screws on cryptocurrency promotions, it’s becoming clear that Spain will be keeping a very close eye on digital platforms like X in the months to come.
Spain’s crackdown on rogue crypto ads is part of a wider European effort to protect consumers from potentially fraudulent or misleading investment opportunities.
The EU has been introducing tighter regulations across the board, with many governments taking action to ensure platforms like X don’t become breeding grounds for illegal or harmful promotions.
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Dilip Kuner
