Italy's CONSOB Issues Warning to Finfluencers on ESMA Crypto Risk Regulations
Regulatory Alert for Crypto Influencers
Italy's financial authority, the Commissione Nazionale per le Societa e la Borsa (CONSOB), has underscored a recent factsheet from the European Securities and Markets Authority (ESMA), cautioning social media finance influencers about adhering to European Union regulations on investment advice and advertising, particularly concerning crypto and rapid wealth content.
In a statement released on Monday, CONSOB emphasized the ESMA's finfluencer document that warns creators about the complexities of promoting financial products, highlighting that it's not akin to endorsing consumer goods like shoes or watches.
The communication warns of the risks associated with promoting contracts for difference (CFDs), forex, futures, certain crowdfunding products, and volatile cryptocurrencies, which may lead to complete loss of invested capital. Influencers are reminded of their legal accountability for their content, regardless of their professional finance background.
ESMA further highlights that paid partnerships must be clearly marked as advertising, and brief disclaimers such as "this is not financial advice" do not exempt influencers from regulatory obligations. Offering personalized investment advice without proper licensing may constitute regulated investment advice.
ESMA and National Regulatory Measures
CONSOB's alert is part of a broader European initiative to regulate finfluencers. ESMA initially tackled social media investment recommendations in October 2021, warning against misleading posts and undisclosed conflicts, which can lead to market abuse charges. Violations can incur administrative fines up to 5 million euros for individuals, with higher penalties for firms, and in certain EU countries, these offenses may be criminally prosecuted.
Other national regulators, like France's Autorité des marchés financiers and the advertising authority ARPP, have developed specific finfluencer tools. In 2023, they introduced a Responsible Influence Certificate, mandating influencers to undergo training for financial promotions, including crypto. The UK's Financial Conduct Authority also released social media financial promotions guidance in 2024, followed by a campaign with "Love Island" star Sharon Gaffka to caution against unauthorized or non-compliant promotions.
Broader Crackdown on Celebrity Endorsements
This regulatory focus aligns with a wider reaction against celebrity-driven hype around risky financial products. In 2022, the United States Securities and Exchange Commission fined Kim Kardashian $1.26 million for promoting EthereumMax (EMAX) tokens without disclosing a $250,000 payment. A 2023 class-action lawsuit sought $1 billion from "FTX influencers" for allegedly misleading followers in promoting products linked to the collapsed exchange.