Spain Imposes €5 Million Fine on X for Cryptocurrency Advertising Violations

The Spanish securities regulator has imposed a substantial fine of five million euros on Elon Musk's social media platform X for non-compliance with regulations governing financial product advertisements, particularly those related to cryptocurrencies.

According to an official bulletin released by CNMV, the $5.8-million penalty was levied for what they described as "a very serious ongoing violation" of advertising standards.

CNMV initiated an investigation in November 2023 after identifying advertisements on X that were promoted by Quantum AI, an unauthorized financial company marketing cryptocurrencies.

These advertisements were found to be in direct violation of regulations implemented in March 2023, which require stricter control over the advertising of financial products on websites, media outlets, and social networks.

Under these regulatory requirements, online platforms operating in Spain must verify that advertisers are not included on lists of illegal companies and possess proper authorization to offer financial services.

Rodrigo Buenaventura, who was the CNMV president when the investigation was announced in November 2023, emphasized the legal obligations of platforms to conduct these verification processes.