Spain Fines Elon Musk's Platform X IDR 97.1 Billion For Crypto Asset Ads Without Permit

JAKARTA The Spanish capital market authority imposed a fine of 5 million euros (approximately IDR 97.1 billion) on Elon Musk's social media platform X. The platform is considered to have failed to ensure that the crypto asset company advertising on the platform has a license to offer investment services.

The fine, dated November 3, was officially announced in the Spanish government bulletin on Thursday, November 13.

Platform X, formerly known as Twitter, has not responded to requests for comment sent via email. According to reports, this fine decision can still be appealed to the Spanish High Court.

The Spanish government since 2022 has taken firm steps to regulate the ads for crypto assets that are circulating, appointing CNMV (Commissionmensional Del Mercado de Valores) as the main supervisory agency.

CNMV is tasked with reviewing large-scale advertising campaigns and ensuring that investors understand the high risks associated with digital assets.

In an official document, CNMV stated: CNMV has decided to impose a fine on the Twitter International Unlimited Company because it does not fulfill the obligation to verify whether Quantum AI already has permission from CNMV to provide investment services, as well as whether the company is included in the CNMV alert list or a foreign supervisory agency.

Quantum AI companies, named in the report, are known to run ad campaigns on platform X to offer crypto asset-based investment services. However, CNMV considers that X failed to verify compliance and authorization of the company, as required by Spanish financial advertising regulations.

The move marks the Spanish government's latest efforts to tighten scrutiny of digital asset promotions on social media, especially amid rising cases of fraud and high-risk investments involving cryptocurrencies.

Sanctions against X come amid the European Union's push to implement the Markets in Crypto-Assets (MiCA) rules, which take effect in stages by 2025. These regulations aim to create a single standard for promotion, trading, and security of crypto assets throughout the European Union.

With this fine, Spain warns that digital platforms including large social media such as X will not be immune from legal responsibility if they become a means of spreading investment ads without permission.