365Crypto
Regulators Enter the Comment Section
Italy’s market watchdog CONSOB has a message for crypto influencers. Posting about tokens is not fashion content.
The regulator shared a new ESMA factsheet that targets so-called finfluencers on social media.
The warning is simple. EU investment rules apply to crypto promotions, hype posts, and fast-profit claims.
Crypto Promotions Carry Real Risk
ESMA reminds creators that crypto assets can drop to zero. Losses can reach 100% of invested funds.
This rule also covers CFDs, forex trading, futures, and high-risk crowdfunding products.
Influencers stay responsible for their posts, even without a finance license or formal training.
Disclaimers Are Not Magic Shields
Short phrases like “not financial advice” do not erase legal duties. Paid promotions must be labeled clearly.
Giving personal investment tips without approval may count as regulated financial advice.
That can trigger fines or other penalties across the European Union.
Europe Tightens Control on Online Hype
CONSOB’s notice fits a wider EU crackdown on misleading financial content.
ESMA first warned about social media market abuse in 2021 under EU market rules.
Some violations can lead to fines up to €5 million, with criminal charges in certain countries.
Footnotes:
CFDs: leveraged contracts that amplify gains and losses.
Market abuse: illegal actions that mislead investors or distort prices.
