Finfluencers Face Stern CONSOB Warning as ESMA’s Crypto Crackdown Intensifies

In a decisive move that signals a tougher European stance on digital asset promotion, Italy’s financial watchdog, CONSOB, has formally put social media ‘finfluencers’ on notice. This action, communicated on Monday, directly amplifies a critical factsheet from the European Securities and Markets Authority (ESMA), unequivocally stating that EU financial promotion rules now fully govern cryptocurrency content. Consequently, creators pushing volatile digital assets or ‘get rich quick’ schemes face severe legal and financial repercussions, including massive fines and potential criminal liability.

CONSOB Amplifies ESMA’s Direct Warning to Finfluencers

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has taken a proactive step by publicly endorsing and disseminating ESMA’s newly published guidance for finance influencers. The core message is unambiguous: promoting financial products, especially high-risk cryptocurrencies, differs fundamentally from marketing consumer goods like shoes or watches. According to the joint communication, influencers remain legally accountable for their posts, even if they lack formal financial qualifications. Moreover, the guidance stresses that short, generic disclaimers such as ‘this is not financial advice’ do not absolve creators of their regulatory responsibilities under existing EU law.

The regulatory focus specifically targets contracts for difference (CFDs), forex, futures, certain crowdfunding products, and notably, cryptocurrencies. ESMA’s document warns that investors can lose 100% of their capital in these speculative markets. Therefore, CONSOB urges social media users to distrust ‘get rich quick’ claims and advises influencers to verify the authorization status of any financial operator they mention. This measure aims to prevent the inadvertent facilitation of crypto scams, a growing concern for regulators globally.

The Legal Framework and Penalty Structure

This latest notice is not an isolated policy shift but part of a structured regulatory escalation. ESMA first addressed investment recommendations on social media under the Market Abuse Regulation (MAR) in October 2021. That statement clarified that misleading posts and undisclosed conflicts of interest could constitute market abuse or non-compliant investment recommendations. Breaches of these rules carry significant administrative penalties, including fines of up to €5 million for individuals. For firms, the financial ceilings are even higher. Importantly, in several EU member states, market abuse offenses can also lead to criminal prosecution, adding a severe layer of risk for negligent or malicious influencers.

Europe’s Coordinated Clampdown on Risky Financial Promotion

CONSOB’s action reflects a synchronized, pan-European effort to rein in the Wild West atmosphere of social media financial advice. Other national regulators have already pioneered tailored tools and campaigns to address this challenge. For instance, in 2023, France’s Autorité des Marchés Financiers (AMF) collaborated with the advertising authority ARPP to launch a ‘Responsible Influence Certificate.’ This mandatory training and testing scheme is required for any influencer wishing to partner with ARPP member brands on financial promotions, which explicitly includes cryptocurrency content.

Similarly, the United Kingdom’s Financial Conduct Authority (FCA) finalized its comprehensive social media financial promotions guidance in 2024. Following this, the FCA launched a public awareness campaign featuring ‘Love Island’ star Sharon Gaffka. The campaign highlighted that unauthorized or non-compliant crypto promotions could amount to illegal financial promotions, subject to enforcement action. The table below summarizes key regulatory actions across Europe:

This multi-jurisdictional approach demonstrates a clear consensus: the era of unregulated financial hype on social platforms is ending. Regulators are now leveraging a combination of hard law, soft guidance, and public partnerships to create a safer digital environment for retail investors.

Global Precedents: Celebrity and Creator Crackdowns Intensify

The European regulatory momentum mirrors a broader global backlash against celebrity and creator-led promotion of high-risk crypto assets. High-profile enforcement actions in the United States have set powerful precedents. In 2022, the U.S. Securities and Exchange Commission (SEC) fined reality television star Kim Kardashian $1.26 million. The penalty was for unlawfully touting EthereumMax (EMAX) tokens on Instagram without properly disclosing a $250,000 promotional payment. This case sent a shockwave through the influencer community, establishing that fame does not grant immunity from securities laws.

Furthermore, the collapse of the FTX exchange in 2022 triggered significant legal fallout for its promoters. A 2023 class-action lawsuit targeted a group of so-called ‘FTX influencers,’ seeking $1 billion in damages. The lawsuit alleged that prominent YouTubers and online personalities misled their followers by promoting products linked to the now-bankrupt exchange. These cases underscore several critical points for today’s finfluencers:

• Legal Liability is Real: Influencers can be held personally liable for misleading promotions.
• Disclosure is Non-Negotiable: Paid partnerships must be clearly and conspicuously labeled as advertising.
• Due Diligence is Essential: Promoting an unlicensed or fraudulent entity can lead to devastating financial and reputational damage.

The Evolving Role of National Regulators

National authorities like CONSOB are now crucial enforcement bridges between overarching EU policy and on-the-ground compliance. By actively disseminating ESMA’s guidance, CONSOB ensures the message reaches the Italian influencer ecosystem in a direct and authoritative manner. This local amplification is vital for effectiveness, as it contextualizes EU-wide rules within national legal frameworks and enforcement practices. It also serves as a deterrent, signaling that surveillance is active and consequences are imminent for non-compliance.

Implications for the Crypto and Social Media Landscape

The ramifications of this regulatory tightening are profound for multiple stakeholders. For legitimate cryptocurrency businesses, the rules create a clearer, albeit stricter, framework for ethical marketing partnerships. They must now exercise greater care in selecting influencer partners and ensure all promotional content meets compliance standards. For social media platforms, increased pressure may lead to more robust internal policies regarding financial content, potentially including verification systems for licensed financial promoters.

Most importantly, for retail investors and social media users, these measures aim to provide a layer of protection. The goal is to foster a more transparent information environment where the risks of speculative investments like cryptocurrency are not obscured by charismatic presentation and unrealistic promises. However, the onus remains on individuals to critically evaluate financial advice sourced from social media, regardless of disclaimers or a creator’s follower count.

Conclusion

CONSOB’s formal notice, amplifying ESMA’s stern factsheet, marks a pivotal moment in the regulation of digital finance communication. The message to finfluencers is clear: promoting cryptocurrencies and other high-risk financial products on social media is a regulated activity with serious legal consequences. As European and global regulators continue to coordinate their crackdown, the landscape for online investment advice will become increasingly formalized and compliant. This evolution, while challenging for creators, is ultimately designed to protect consumers and ensure the integrity of financial markets in the digital age. The era of impunity for irresponsible crypto promotion is conclusively over.

FAQs

Q1: What exactly did CONSOB and ESMA warn finfluencers about?
CONSOB and ESMA warned that EU rules on investment recommendations and advertising fully apply to social media content promoting cryptocurrencies and other high-risk financial products. Influencers are legally responsible for their posts, and generic disclaimers do not remove their regulatory obligations.

Q2: What penalties can finfluencers face for non-compliance?
Under EU regulations, individuals can face administrative fines of up to €5 million. In some member states, violations may also lead to criminal prosecution. Additionally, influencers could be held liable in civil lawsuits for investor losses.

Q3: Does the ‘this is not financial advice’ disclaimer protect influencers?
No, the guidance explicitly states that short disclaimers like ‘this is not financial advice’ do not neutralize an influencer’s regulatory obligations. If the content constitutes a personalized investment recommendation, it may still be considered regulated advice requiring a license.

Q4: How are other European countries regulating finfluencers?
France requires a ‘Responsible Influence Certificate’ for influencers doing financial promotions. The UK’s FCA has strict social media guidance and runs public awareness campaigns. These actions form a coordinated European clampdown.

Q5: Have there been real-world cases of influencers being punished?
Yes. In the U.S., Kim Kardashian was fined $1.26 million by the SEC for unlawfully promoting a crypto token. Furthermore, influencers who promoted FTX are facing a $1 billion class-action lawsuit for allegedly misleading followers.