Spain Pins X for Illegal Crypto Promotion

In a Europe that had dreamed of a tidal wave of CBDCs, it is ultimately the crypto ecosystem that imposed its codes. Powered by decentralization and network effect, it outpaced institutional projects. Faced with this gap, states tighten the screws. And when it comes to regulation, Spain doesn’t do things halfway. The latest to learn this the hard way? The social network X, for allowing fraudulent crypto ads to slip through.

X and cryptos: unfiltered advertising, hefty fine

While BBVA has just obtained the green light to offer Bitcoin and Ether trading in Spain, the CNMV regulator tightens the screws: it imposed a 5 million euro fine on X (formerly Twitter). The cause: the dissemination of ads promoting Quantum AI, a company unauthorized to offer investment services. A breach qualified as “very serious and continuous,” according to the Official State Journal.

The investigation, opened as early as November 2023, revealed that X did not verify whether Quantum AI was on a blacklist established by the CNMV or by foreign regulators. Yet, since March 2023, Spanish law requires all platforms to verify the legality of their financial advertisers before broadcasting.

Rodrigo Buenaventura, former president of the CNMV, reminded that platforms like X are legally required to verify if advertisers are on a blacklist of flagged entities. They must also ensure that these advertisers have the necessary licenses to offer financial services.

The X-Quantum AI case illustrates how some social networks, through negligence or lack of moderation, can amplify the reach of toxic financial promises.

Musk, X and the challenges of moderation in the crypto era

Renamed X after being bought by Elon Musk, the social network took a strategic turn mixing artificial intelligence and media overhaul ambition. In March 2025, it merged with xAI, valuing the whole at 33 billion dollars, debt excluded.

At the same time, X’s advertising revenue rose 17.5% in the United States, and 16.5% globally. But this rebound does not hide its flaws. Because despite this growth, transparency remains partial, especially regarding crypto advertisers.

The CNMV criticizes it:

(CNMV has decided to) impose a fine on Twitter International Unlimited Company… for failing to fulfil its duties to verify whether Quantum AI was authorized to provide investment services by the CNMV and whether Quantum AI was included in the list of entities warned about by the CNMV or by foreign supervisory bodies.

This case exposes the tension between a business model based on advertising and the duty of control. And for investors, it reminds that behind a harmless tweet can hide a well-oiled scam disguised as a crypto opportunity.

Spain stands as a pioneer against X’s laissez-faire

Since 2022, the Spanish CNMV has been strengthening its arsenal against the explosion of crypto frauds. The X case is emblematic of a willingness to impose joint responsibility on platforms. The March 2023 law now requires all online entities to filter crypto ads.

In this context, even giants like X are no longer safe. The goal? To end the proliferation of crypto ads from unauthorized entities. Bitcoin, altcoins or obscure tokens must be treated the same way.

Europe, meanwhile, is organizing: measures like the Digital Services Act plan to extend this vigilance to all member states. For users, this means a likely reduction in dubious sponsored content, but also enhanced protection against fake investments.

What to take away

• 5 million €: amount of the fine imposed on X by the CNMV;
• November 2023: date the investigation against X was opened;
• Quantum AI: unauthorized company at the center of the fraud;
• 33 billion $: estimated valuation of X after merger with xAI;
• March 2023: start of advertising regulation in Spain.

When it comes to tracking down wrongdoers, Europe doesn’t do things halfway anymore. It recently proved it again by dismantling a well-established crypto fraud network. Vigilance remains high, and the wind is turning in favor of a safer ecosystem.