Italy Regulator Warns Finfluencers That EU Rules Fully Apply to Crypto Promotions

Italy’s securities regulator, the Commissione Nazionale per le Societa e la Borsa, has issued a warning to social media finance influencers, emphasizing that European Union rules on investment recommendations and advertising apply in full to crypto-related and “get rich quick” content. The notice highlights a new factsheet from the European Securities and Markets Authority aimed directly at finfluencers.

ESMA Says Financial Promotion Is Not Lifestyle Advertising

In its communication, CONSOB referenced ESMA’s guidance published last Thursday, which cautions creators that promoting financial products is fundamentally different from marketing consumer goods. The regulators stress that influencers must understand the legal consequences of promoting high-risk financial instruments to broad audiences.

High-Risk Crypto and Trading Products Carry Full Legal Liability

The ESMA factsheet warns that promoting contracts for difference, forex, futures, certain crowdfunding products, and highly volatile cryptocurrencies can expose investors to the loss of all invested capital. Influencers remain legally responsible for their content even if they are not licensed finance professionals.

Disclaimers and Hidden Ads Offer No Protection

Regulators underline that paid partnerships must be clearly labeled as advertising and that short disclaimers such as “this is not financial advice” do not remove regulatory obligations. Providing personalized investment guidance without proper authorization may be treated as regulated investment advice under EU law.

Users Urged to Distrust “Get Rich Quick” Claims

CONSOB echoed ESMA’s call for the public to approach online financial content with skepticism. The regulator urged users to be wary of exaggerated profit claims and encouraged influencers to verify whether the firms and products they promote are properly authorized, warning that failure to do so could facilitate crypto scams.

Europe Tightens Oversight of Finfluencers

The notice fits into a broader European crackdown on finfluencers. ESMA first addressed investment recommendations on social media in an October 2021 statement under the Market Abuse Regulation, warning that misleading promotions and undisclosed conflicts of interest could constitute market abuse or unlawful investment advice.

Heavy Fines and Criminal Penalties Remain on the Table

ESMA has previously noted that violations can result in administrative fines of up to 5 million euros for individuals, with even higher penalties for companies. In some EU member states, serious market abuse offenses may also carry criminal sanctions.

National Regulators Roll Out Targeted Measures

Several European regulators have introduced specialized tools to rein in influencer marketing. In 2023, France’s financial regulator and advertising authority launched a Responsible Influence Certificate, requiring training and testing for influencers promoting financial products, including crypto. In the UK, the Financial Conduct Authority finalized its social media promotion guidance in 2024 and later ran a public awareness campaign featuring “Love Island” personality Sharon Gaffka.

Celebrity Crypto Promotions Face Growing Scrutiny

The regulatory push reflects wider backlash against celebrity-driven hype around risky investments. In 2022, the US Securities and Exchange Commission fined Kim Kardashian $1.26 million for improperly promoting EthereumMax tokens on Instagram without adequate disclosure. A separate class action lawsuit filed in 2023 also targeted prominent “FTX influencers,” seeking $1 billion in damages over allegations of misleading crypto promotions.