Regulator says Elon Musk’s platform failed to monitor financial promotions by unauthorised firms…
Spain’s financial markets regulator, the Comisión Nacional del Mercado de Valores (CNMV), has imposed a €5 million ($5.8 million) fine on X, formerly known as Twitter, for violating national rules on advertising financial products including cryptocurrencies.
In a statement published Thursday in the CNMV’s official bulletin, the agency said the penalty was issued for “a very serious and ongoing violation.”
The investigation began in November 2023, when the regulator detected multiple paid promotions on X linked to Quantum AI, an unauthorised financial company that was using the platform to market cryptocurrency-related investment products.
The CNMV explained that the adverts breached a March 2023 regulation requiring websites, social networks, and other media platforms operating in Spain to strictly monitor financial advertising. The rules mandate that platforms verify whether advertisers are authorised to offer financial services and not listed among banned entities.
At the time of the investigation, Rodrigo Buenaventura, who chaired the CNMV, said the regulation was introduced to protect consumers from misleading or illegal investment promotions.
“Online platforms must ensure that companies advertising investment products are legally authorised and not included in the CNMV’s blacklist,” Buenaventura said when the probe was announced.
The CNMV noted that X failed to take sufficient action to prevent or remove the offending advertisements, leading to Thursday’s fine.
The sanction marks one of the largest penalties imposed on a social media platform in Spain under its updated financial advertising laws, reflecting the regulator’s growing scrutiny of cryptocurrency promotions and unlicensed investment schemes across digital platforms.
