Musk's Network X faces a five million fine from the Spanish regulator

Spanish stock exchange regulator CNMV has fined social network X, owned by Elon Musk, five million euros for failing to ensure the authorisation of a crypto-finance firm that advertised its services on the platform was verified.

According to the decision published on Thursday in the official gazette, X did not verify whether Quantum AI was authorised to provide investment services and whether the company was on the list of entities warned against by the CNMV.

The measure follows stricter regulation of crypto advertising introduced by Madrid in 2022. The CNMV has since overseen mass campaigns and requires that users receive clear information about the risks associated with investing in cryptoassets.

Platform X, formerly known as Twitter, did not immediately respond to the journalists' request. The fine can be challenged in Spain's Supreme Court.

(reuters, lud)