Spain has fined Elon Musk’s social media platform X approximately $5.8 million for failing to verify the authorization of a crypto advertiser.
Spain is taking a firm stance against tech billionaire Elon Musk. The country’s stock market supervisor has imposed a fine of approximately $5.8 million (€5 million) on Musk-owned social media platform X for neglecting to ensure that a cryptoasset company, which advertised on the platform, had the necessary authorization to provide investment services.
According to the Comisión Nacional del Mercado de Valores (CNMV), the fine was levied against Twitter International Unlimited Company, the entity behind X, for not fulfilling its obligations to verify whether Quantum AI was authorized to offer investment services. The CNMV also noted that X failed to check if Quantum AI was listed among entities that had been warned about by the CNMV or foreign supervisory bodies.
This penalty, dated November 3, was officially published in Spain’s bulletin on Thursday. It stems from X’s failure to ensure that Quantum AI was properly authorized to provide investment services and was not included on any warning lists issued by Spanish or international regulators. In recent years, Spain has tightened its regulations to prevent misleading crypto promotions and to ensure that online platforms verify advertisers while clearly communicating investment risks to the public.
The fine underscores the increasing regulatory scrutiny faced by social media platforms as they serve as channels for financial advertising. While X has the right to appeal the decision in Spain’s high court, this case highlights the legal responsibilities that platforms now encounter under global digital, financial, and advertising regulations. It also signals to investors and tech companies that regulators are intensifying their enforcement of compliance measures to protect consumers in emerging, high-risk markets such as cryptocurrency.
X, formerly known as Twitter, is the social media platform owned by Musk. He rebranded it as X following his acquisition in 2022 and later integrated it with his AI firm, xAI, in an all-stock deal in March 2025. This transaction valued X at approximately $33 billion, excluding about $12 billion in debt.
In 2025, X has experienced a modest rebound in advertising revenue, with U.S. ad sales increasing around 17.5% year-on-year and global ad revenue rising approximately 16.5%. The platform continues to serve as a central hub for news, public commentary, and AI-driven features, reflecting Musk’s ambition to integrate advanced AI tools into social media.
Despite this growth, X faces ongoing regulatory challenges. European authorities are scrutinizing its operations, including the recent fine in Spain for violations related to crypto-asset advertising and an ongoing investigation in Ireland under the EU Digital Services Act. User metrics and financial disclosures remain somewhat opaque, suggesting that reported valuations and revenue figures should be interpreted with caution. These uncertainties highlight the challenges in assessing X’s long-term stability and profitability.
Musk’s dual role as the owner of both X and xAI draws additional attention, as regulators and the public closely monitor the intersection of AI tools and advertising practices with financial markets.
Source: Original article