Report: Italy’s Consob Puts ‘finfluencers’ On Notice Amid Esma’s Crypto...

Italy’s securities regulator shared ESMA’s finfluencer factsheet, warning social media promoters that EU rules on investment recommendations and advertising apply to crypto.

Italy’s securities regulator, the Commissione Nazionale per le Societa e la Borsa (CONSOB), has amplified a new factsheet from the European Securities and Markets Authority (ESMA), warning social media finance influencers, or “finfluencers,” that European Union rules on investment recommendations and advertising apply fully to crypto and “get rich quick” content.

In a Monday communication, CONSOB highlighted ESMA’s finfluencers document, published on Thursday, which warns creators that “promoting a financial product or service isn’t like promoting shoes or watches.”

Pushing contracts for difference (CFDs), forex, futures, certain crowdfunding products and volatile cryptocurrencies can, according to the communication, mean losing 100% of invested capital, and influencers remain legally responsible for what they post, even if they are not finance professionals.

The ESMA factsheet also stresses that paid partnerships must be clearly labeled as advertising. Short disclaimers like “this is not financial advice” do not neutralize regulatory obligations, and giving personalized investment tips without a license may amount to regulated investment advice.

​The CONSOB notice highlights ESMA’s messaging, urging users to distrust “get rich quick” claims and influencers to check whether the operators they communicate with are authorized, to avoid facilitating crypto scams.

Related: Victim of a crypto scam? Here’s what to do next

CONSOB’s notice slots into a wider European clampdown on finfluencers. ESMA first addressed investment recommendations on social media in an October 2021 public statement under the Market Abuse Regulation, warning that misleading posts and undisclosed conflicts can qualify as market abuse or non‑compliant investment recommendations.

The authority noted that breaches can carry administrative fines of up to 5 million euros ($5.8 million) for individuals, with higher ceilings for companies, and that in some EU states market abuse offenses can be criminally prosecuted.

​Other national regulators have already experimented with tailored finfluencer tools. In 2023, France’s Autorité des marchés financiers and the advertising authority, Autorité de Régulation Professionnelle de la Publicité (ARPP), launched a Responsible Influence Certificate, a training and testing scheme

Source: CoinTelegraph