X has officially launched "Paid Partnership" labels for sponsored posts, creating a formal disclosure tool for influencer promotions. According to product lead Nikita Bier, the feature aims to curb undisclosed advertising and improve user transparency.
However, a significant restriction applies to cryptocurrency promotions. Under X's new policy, sponsored posts promoting financial products—including cryptocurrencies—are not permitted in Australia, the European Union, or the United Kingdom. Creators in these regions can still post about crypto but cannot use the paid partnership label for such content.
This policy is separate from X's advertising system, which has its own country-specific rules for financial services. The rollout coincides with X's broader push into financial features, including the development of X Money and "Smart Cashtags" for market data.
The move aligns with tightening regulatory scrutiny worldwide. Authorities like the U.S. FTC and the UK's Advertising Standards Authority have been enforcing clearer disclosure rules and have taken action against irresponsible crypto marketing.
For creators and brands outside the banned regions, the labels offer a standardized way to disclose crypto sponsorships. Global campaigns, however, must now navigate stricter geo-targeting and compliance checks to adhere to the new regional restrictions.