ESMA, CONSOB warn crypto and finance influencers over content promotion practices

The Commissione Nazionale per le Società e la Borsa (CONSOB) published a factsheet from the European Securities and Markets Authority (ESMA) on Tuesday, reminding influencers that EU investment rules apply in the advertising of products like crypto.

Italy’s securities commission has told social media “finance influencers” that promoting crypto tokens is not the same as advertising “shoes or watches.” The CONSOB notice called to action the so-called “fin-influencers,” claiming their influence on retail investment behavior has become a concern for the European trading bloc’s financial watchdogs. 

The notice covered posts promoting cryptos, contracts for difference, forex, futures, and other speculative products marketed as “get rich quick” opportunities.

CONSOB treats crypto promotion as regulated investment advice

The ESMA factsheet, shared by CONSOB through its official channels on Tuesday, makes it clear that promoting financial products online is not comparable to advertising consumer goods. Short disclaimers and statements like “this is not investment advice,” do not protect influencers from legal responsibility, the Italian financial authority said.

“Posting investment recommendations, even in informal language, can qualify as regulated investment advice under EU law. Moreover, telling followers what to buy or avoid may require authorization from a national regulator,” the notice read. 

According to ESMA, disclaimers cannot supersede regulatory obligations on investment recommendations or advertising. Public figures and influencers who advertise financial products without the watchdog’s permission will be held accountable if their content is personalized or passes for directive advice.

The regulator warned that social media posts encouraging risky strategies can have “negative consequences” for retail audiences and inexperienced investors. ESMA and CONSOB insist that any compensation, gifts, or other benefits connected to promotions must be clearly disclosed.

“If you are not authorized to provide investment advice, do not provide personalized recommendations on what to buy, sell, or hold. Even publicly sharing your opinion about whether a stock or cryptocurrency will rise or fall, or promoting an investment strategy, may be considered an investment recommendation, to which specific rules may apply,” CONSOB wrote in its statement.

Some of the products mentioned included CFDs, leveraged forex trades, certain crowdfunding investments, and cryptocurrencies, and any asset that would result in the loss of all invested capital. 

The authority explained that influencers are legally responsible for the content they publish, so any misleading, exaggerated, or reckless posts would lead to sanctions under EU financial law.

Italy joins European countries in financial influence enforcement

The Italian notice fits into the European clampdown on online investment promotion, which ESMA first addressed in October 2021. At the time, the EU markets watchdogs propounded that misleading social media posts and undisclosed conflicts could breach the Market Abuse Regulation.

In serious circumstances, this kind of behavior could be seen as illegal investment advice or even market manipulation under EU legislation. Individuals who break the rules can be fined up to five million euros, while institutions can be fined even more.

In France, the Autorité des marchés financiers partnered with the advertising watchdog ARPP in 2023 to launch a Responsible Influence Certificate. The program requires influencers promoting financial products, including crypto assets, to complete training and testing before working with ARPP member brands.

Over to the west, the United States Securities and Exchange Commission (SEC) fined Kim Kardashian $1.26 million for promoting EthereumMax tokens on Instagram without disclosing a $250,000 settlement for the advertisements.

CONSOB strengthens domestic law after MiCA compliance deadline

At the end of last year, Italy’s Companies and Exchange Commission reported that the number of blocked investment websites had now topped 1,500, six years after the start of the enforcement period. CONSOB was granted authority back in 2019 to order internet service providers (ISPs) to block websites run by unregistered virtual asset service providers.

Since then, the regulator has reportedly shut down 1,507 websites and blocked 763 individual web pages, taking the total number of blocked domains to 2,270, as of the start of 2026.

CONSOB also reiterated upcoming regulatory deadlines for crypto service providers operating in Italy. VASPs in the jurisdiction without the proper licensing were allowed to continue issuing services until the end of December last year, in tandem with the EU’s crypto law Markets in Crypto Assets (MiCA) regulation.

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