Madrid (Brussels Morning Newspaper) – Spain’s securities regulator announced on Thursday that it has imposed a five-million-euro fine on US social media company X for not adhering to regulations related to advertising financial products, including cryptocurrencies.
In early 2022, Spain moved to regulate the widespread advertising of cryptoassets by assigning the CNMV watchdog the responsibility of approving large campaigns and ensuring investors understand the associated risks.
In an official bulletin, the CNMV said the $5.8-million fine was imposed for
“a very serious ongoing violation”.
Why did Spain fine X for crypto advertising?
In November 2023, the regulator initiated an investigation upon discovering advertisements on X from Quantum AI, an unauthorised financial company promoting cryptocurrencies.
The CNMV stated that the postings breached a regulation implemented in March 2023, which mandates that websites, media outlets, and social networks improve their control over advertising of financial products, Reuters reported.
In November 2023, Rodrigo Buenaventura, then president of the CNMV, announced the investigation, stating that Spanish online platforms are legally obliged to verify that advertisers are not listed among illegal companies and are authorised to provide financial services.
How do Spanish laws protect investors from crypto risks?
Advertisers and companies promoting cryptoassets are required to notify the CNMV at least 10 days prior to any campaigns aimed at audiences exceeding 100,000 people.
The new regulations have been implemented, enabling the CNMV to specifically oversee advertising for all types of cryptoassets and to issue risk warnings. Spain’s rules also extend to cryptoasset service providers when they promote their services, as well as to anyone advertising on their own or on behalf of third parties.
The X, owned by Elon Musk, is also under extensive regulatory scrutiny in Europe in 2025, primarily for breaches of the EU’s Digital Services Act (DSA).
Why is X facing wider EU regulatory scrutiny?
The European Union is also reportedly getting ready to fine X for breaking the DSA, the NewsYork Times reported. The fine might go over $1 billion and could reach up to 6% of X’s global annual revenue.
This is due to not meeting transparency requirements, not controlling disinformation, not sharing data with researchers, and not ensuring clear advertising. The investigation began in 2023 and found several violations by X. The EU wants to set an example to discourage other companies from making similar mistakes.
