Italy's CONSOB Warns 'Finfluencers' Over Crypto Promotions as ESMA Issues Risk Alerts

Italy’s securities regulator has joined the European Securities and Markets Authority (ESMA) in warning social media influencers that EU advertising and investment recommendation rules apply fully to crypto-related content. The Commissione Nazionale per le Societa e la Borsa (CONSOB) shared ESMA’s new factsheet aimed at financial influencers, or 'finfluencers,' emphasizing the legal responsibilities of promoting high-risk financial products. The move signals increased scrutiny of how crypto and investment advice are marketed online.

The factsheet outlines that finfluencers bear full responsibility for their content, even without formal financial qualifications. Promotional material must be clearly labeled as advertising, and disclaimers like 'this is not financial advice' are insufficient to absolve creators of liability. CONSOB highlighted that influencers may face significant penalties if they provide personalized investment tips without proper licensing.

CONSOB’s warning is part of a broader European regulatory push to address risks tied to social media finance content.

ESMA first addressed the issue in 2021 under the Market Abuse Regulation, noting that misleading or incomplete information could qualify as market abuse. Penalties for non-compliance can include fines of up to 5 million euros for individuals and higher fines for firms. In some EU states, violations can even lead to criminal prosecution.

Why the Move Happened

The regulatory focus on finfluencers stems from growing concerns about the influence of unqualified individuals on investment decisions. Promoting high-risk products like contracts for difference (CFDs), forex, futures, and volatile crypto assets can result in total capital loss. CONSOB’s communication urged users to be wary of 'get-rich-quick' schemes and influencers to verify the authorization status of the operators they promote.

The factsheet also emphasizes that influencers must not promote products they do not fully understand. This is a key step in preventing the spread of misleading or incomplete information about complex financial instruments.

What Analysts Are Watching

The crackdown is expected to have a significant impact on the behavior of finfluencers and their platforms. Analysts are watching whether this increased regulatory pressure will lead to greater transparency and safer practices in digital financial promotion.

Other national regulators have already begun implementing tailored tools to address finfluencer-related risks. ESMA’s guidance is not just advisory; it serves as a framework that regulators can use to enforce compliance more effectively.

With the global adoption of the Crypto-Asset Reporting Framework (CARF), more jurisdictions are aligning their rules with international standards. These measures are part of a larger effort to integrate crypto into mainstream financial systems while ensuring robust oversight.

The evolving regulatory landscape suggests that finfluencers will need to adapt to more stringent requirements for transparency, due diligence, and risk disclosure. Failure to do so could result in severe financial and reputational consequences.