Italy’s CONSOB Stamps Out More Unregulated FX Brokers

CONSOB decided in June to follow in the footsteps of ESMA, banning binary options and also extended CFDs restrictions.

Italy’s securities regulator on Thursday warned against yet another list of firms that were found engaging in “unlawful” and “misleading” marketing practices with regard to the promotion of several financial products.

La Commissione nazionale per le società e la Borsa (CONSOB) has updated its blacklist with new FX and binary options brands including Codexfx Ltd, grandfxpro, and Dubai FXM, among many others.

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Earlier in June, the watchdog decided to follow in the footsteps of ESMA, banning the sale of binary options to retail customers and also extended its restriction against promoting the contracts for difference (CFDs) to non-professional investors.

The updated list includes the following domains:

WebNet Ltd and 4COM Network Srl (www.2dots.com);

One Thousand One Ltd (www.dax1001.com);

Herdos  (https://herdos.com);

Lancelot Equity Ltd (https://gocapitalfx.com and https://gocapital123.com);

TQR Trade (https://it.tqrtrade.com);

Sucaba Enterprise Ltd (www.ptbanc.com);

CMP24 Ltd (www.cmp24.com);

Capital Tech Limited (www.pbncapital.com);

PayPeq Holdings OÜ (www.investus.fm);

Madar Partners Ltd (www.axeinvest.com);

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Swissinv24 Ltd (https://swissinv24.com);

Codexfx Ltd (www.codexfx.com);

A Corp Ltd (www.londonfuturemarket.com);

Apsilon Ltd (www.grandfxpro.com);

Dubai FXM Ltd (www.dubaifxm.com and www.dubaifxm24.com);

Light Media Ltd (https://it.wincapitalpro.com);

Global Es Ltd and Sonartech OÜ (www.capitalfmi.com);

Brokerz Ltd and All Media Eood (www.brokerz.com);

London Capital Ltd (www.londoncapitaltrade.com);

Pmt247 Ltd (www.pmt247.com).

The CONSOB warning list also features the names of businesses that are dealing in crypto assets, either in the form of the underlying coins or its related derivatives such as CFDs. The Italian regulator warned that the said brokers offer cryptocurrency trading services without having the proper permissions.

So far, Italy does not have specific legislation governing cryptocurrencies. The country’s regulators only tried to provide a definition of the virtual assets exclusively for the purpose of AML laws, qualifying virtual currencies as a “digital representation of value not issued by a central bank or a public authority, not necessarily linked to a legal tender currency, used as a medium of exchange for purchases of goods and services, electronically transferred, stored and traded.”

Most recently, however, the finance ministry has completed its consultations on registration and reporting requirements of the blockchain industry. The bill draft requires crypto exchanges to report their activities in full to the authorities, which is an addition to the previous decree issued in May 2017.

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