Italian financial markets regulator, Consob, has published earlier today yet another set of warnings to FX and CFDs businesses targeting Italian residents without being authorized.
The latest additions to the warning list include: Sanata Group Eood and Pentacle Group Ltd (www.chronofm.com), Thinking Ahead Ltd and Kitano Ltd (www.solidfxpro.com) and Solid Plus Ltd, which operates through the website www.solidfxplus.com.
La Commissione Nazionale per la Societá e la Borsa (CONSOB) also released a new blacklist of several forex, binary options brokers, and asset management providers, stating that the firms have been listed as trading scams by other European financial regulators.
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The Italian watchdog explained that while some blacklisted brands not only lack the appropriate licenses or authorization to operate in Italy, it also believes that these platforms are pure trading scams that offer fraudulent High Yield Investment Programs (HYIP). They have come under the scrutiny of CONSOB after advertising services to the Italian public without permission.
Some of the listed firms are also involved in schemes to encourage investors to trade or invest in cryptocurrencies. Based on multiple complaints it received, the Commission reportedly started gathering information on several crypto trading platforms in Italy.
To date, no platform has been recognized by the CONSOB as an exchange or exempted from recognition. Any platform that offers cryptocurrencies that fit the definition of securities must determine whether it is a marketplace. Marketplaces are required to comply with the rules governing exchanges or alternative trading systems.
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.