X Fined €5M in Spain for Misleading Crypto Ads

Spain’s securities regulator, the Comisión Nacional del Mercado de Valores (CNMV), has imposed a €5 million ($5.8 million) fine on social media platform X, formerly known as Twitter, for failing to comply with regulations governing the advertising of financial products, including cryptocurrencies. The CNMV described the breach as “very serious and ongoing,” underscoring the importance of protecting investors from unregulated financial promotions.

The investigation, launched in November 2023, was triggered after the CNMV detected multiple advertisements on X linked to Quantum AI, an unauthorised financial services company marketing cryptocurrency products to Spanish users. According to the regulator, these ads violated a regulation introduced in March 2023, which requires all online platforms—including websites, media outlets, and social networks—to ensure that advertisers are legally authorised to offer financial services in Spain and are not operating illegally.

“Platforms have a legal responsibility to verify the legitimacy of financial service providers and prevent unauthorised entities from promoting high-risk products to consumers,” said Rodrigo Buenaventura, CNMV president at the time of the probe. “Failure to adhere to these rules undermines investor protection and exposes the platform to regulatory sanctions.”

This fine reflects Spain’s increasing regulatory scrutiny over digital platforms and highlights the broader challenges faced by social media networks in monitoring financial content. The CNMV’s action sends a clear message to online platforms operating in Spain: rigorous oversight of financial advertisements is mandatory, and lapses will attract significant penalties.

The move also comes amid a global trend of regulatory enforcement targeting social media companies. Across Europe and beyond, authorities have intensified efforts to curb misleading financial promotions, particularly in the rapidly expanding cryptocurrency sector, where fraud and unauthorised schemes remain a major concern. For platforms like X, the ruling underscores the need for stronger compliance mechanisms and tighter control over advertiser vetting processes.

Industry observers suggest that this fine could prompt social media companies to re-evaluate their advertising policies and implement more stringent verification systems to avoid similar penalties in other jurisdictions. Analysts also note that heightened regulatory enforcement may affect revenue from high-risk financial advertising but could enhance long-term trust in digital platforms among users and regulators alike.

The CNMV’s action against X represents one of the most high-profile regulatory interventions in Spain’s digital advertising landscape, reinforcing the message that the promotion of financial products, especially cryptocurrencies, must comply with national laws and investor protection standards.