Italy’s financial regulator, the Commissione Nazionale per le Società e la Borsa (CONSOB), is intensifying its scrutiny of "finfluencers" – financial influencers – who promote investment opportunities online, particularly those involving crypto-assets. This move aligns with recent warnings issued by the European Securities and Markets Authority (ESMA) regarding the risks associated with social media-driven investment advice.
CONSOB is emphasizing that finfluencers must be aware of the regulations surrounding financial promotions and investment recommendations. They are reminding these individuals that disseminating false or misleading information can lead to legal repercussions, potentially falling under market manipulation regulations concerning both financial instruments and crypto-assets.
ESMA has released guidance for finfluencers, urging them to avoid offering investment advice without the necessary legal authorization. The EU regulator highlights that simply including disclaimers such as "This is not investment advice" might not be enough to avoid legal issues arising from unauthorized promotions. Furthermore, ESMA stresses the importance of transparency, requiring finfluencers to clearly disclose any compensation, gifts, or other benefits received in connection with promoting financial products, using terms like "advertisement," "sponsored," or "paid collaboration". They should also reveal any personal interest, such as whether they have invested in the instruments they are discussing.
Both CONSOB and ESMA are particularly concerned about the promotion of high-risk products like contracts for difference (CFDs), currency trading, futures, certain crowdfunding initiatives, and volatile crypto-assets. ESMA advises finfluencers to avoid making unrealistic promises and to ensure they highlight the potential for investors to lose 100% of their capital. They also warn against creating a sense of urgency or pressure with "get rich quick" messages and to verify whether the operators they are promoting are authorized to operate.
CONSOB is urging savers to exercise caution and make informed decisions, avoiding hasty investment choices based solely on the recommendations of finfluencers or the "herd effect". They emphasize the need to be wary of investment opportunities presented as highly profitable and risk-free, reminding investors that all financial investments carry a degree of risk. They also highlight the importance of checking the obligations and prohibitions in force, particularly regarding the correct presentation of information that may constitute investment recommendations, in accordance with market abuse rules, and the transparency of any potential conflicts of interest.
This increased regulatory attention comes as the deadline approaches for Virtual Asset Service Providers (VASPs) in Italy to comply with the EU's Markets in Crypto-Assets Regulation (MiCA). CONSOB has reminded VASPs that they must obtain MiCA-compliant authorization to continue operating in Italy after December 30, 2025. VASPs that applied for authorization by December 30, 2025, can continue operating while their applications are reviewed, but only until June 30, 2026.
CONSOB also reminds crypto investors to check if their platform has applied for MiCA authorization or intends to exit the market, consulting the list of VASPs maintained by the Organismo Agenti e Mediatori (OAM) or the register of authorized CASPs kept by ESMA.
Furthermore, ESMA, the EBA (European Banking Authority), and EIOPA (European Insurance and Occupational Pensions Authority) have jointly issued warnings about the risks associated with crypto-assets, emphasizing that legal protections for crypto-asset investments are limited compared to traditional investments. They encourage investors to consider whether they understand the risks involved, whether the operators they are dealing with are authorized in EU countries, and whether their electronic devices are secure.
