The major crypto exchange Binance is not authorized to carry out its activities in Italy, says the Italy’s Securities Regulator CONSOB. In the press release, the Italian authorities also warned the citizens to make careful investment choices.
The regulator “Consob warns savers that the companies of the ‘Binance Group’ are not authorized to provide investment services and activities in Italy, not even through the website www.binance.com.”
The firm cannot offer services through the website as it has a section called “derivatives” and “Stock Token”.
CONSOB also stressed that crypto, in general, involves high volatility. Thus, people should be careful while making transactions. The regulator noted, “In any case, investors must be informed that transactions in instruments related to crypto-assets may pose risks that are not immediately perceptible due to their complexity, high volatility as well as security vulnerabilities.”
A Binance spokesperson said its website did not operate out of Italy. He also added that the CONSOB notice had no direct impact on its services.“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously,” he added.
Consob’s warning letter to Binance
In a letter to Binance’s lawyers, Consob said it has the power to order internet providers. It can order internet providers to stop offering services to unauthorized investment service providers. “According to Italian legislation, providing investment services and activities without the prescribed authorization constitutes an illicit activity which is criminally punishable,” the letter said.
Italy is the latest country to join the growing list of countries that issued warnings against Binance. Last month, the UK Financial Conduct Authority issued consumer warnings on Binance Markets Limited and the Binance Group. According to FCA, Binance Markets Limited can’t engage in any regulated activity in the UK.
Along with the UK and Italy, Thailand, Japan, Germany and the US also targeted the Binance group in recent months.
