A lesser-known cryptocurrency and FX broker called Trade Com Limited was just blacklisted by Italy’s financial regulator after the company was found facilitating trading in digital currencies without being authorized to provide investment services or activities in the country.
La Commissione nazionale per le società e la Borsa (CONSOB), the statutory body set up to police Italy’s domestic securities and futures market, has clarified that the company in question does not, in fact, have any valid license of any kind. It stressed that Trade Com Limited, operating under the brand CryptoFX Online, is not authorized to promote its advertised products.
CryptoFX Online is the latest company to come under scrutiny by the watchdog. The broker is operating from the site https://cryptofxonline.com, purporting to be registered in St. Vincent and the Grenadines.
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This warning is yet another case in which Italian authorities seem to have stepped up their game and have gone after illegal cryptocurrency brokers. The Italian regulator follows in the footsteps of other authorities in Europe which have recently taken serious steps to curtail crypto activities and stem the flow of unregulated and non-compliant companies.
However, Italy has allowed financial institutions to deal in virtual currencies, just that they are advised to wait until formal regulations are announced. Potential complications may arise if Italy’s stance becomes incongruous with that of the broader European Union (EU) or other member states.
In addition, the Italian watchdog has published a warning against a list of financial entities that have been listed as trading scams by other European financial regulators. This is why CONSOB advises Italian investors to check its registers before they deposit any funds with a broker, especially if the related broker used aggressive marketing techniques.
As the public authority responsible for regulating the Italian financial markets, CONSOB’s main activity is protecting the investing public.