Spanish Regulator Fines Social Platform X €5 Million Over Crypto Advertising Case

The Spanish Securities Market Commission (CNMV) has imposed a €5 million fine on the social platform X for failing to meet national advertising requirements for financial and crypto-related products. According to the regulator, the platform did not verify whether Quantum AI — a company that actively promoted crypto-investment services through X — held the appropriate authorization to provide such financial operations in Spain.

The CNMV emphasized that platforms hosting financial advertisements must ensure that the companies placing them are fully licensed. In this case, X allegedly did not verify whether Quantum AI was included in the list of authorized or flagged entities. As noted in the official document, this represents a serious breach of the obligations established by Spanish law.

The fine comes amid a broader effort by European regulators to tighten control over crypto-advertising. In 2022, Spain introduced new rules giving CNMV the authority to monitor mass promotional campaigns related to digital assets. This policy followed a significant rise in crypto advertising: according to EU research, crypto-related promotional activity increased by more than 280% between 2020 and 2022. At the same time, surveys indicate that 7 out of 10 retail investors in Spain misunderstand the risks associated with high-volatility digital assets.

The sanction against X may still be appealed before Spain’s High Court, but the decision sends a clear message. Regulators across Europe are demanding greater responsibility from platforms that host financial ads. With more than 25% of new investors under 30 entering the market through social-media advertising, authorities aim to prevent misleading campaigns and ensure that crypto promotions do not exploit inexperienced audiences.