Italian Regulator Warns Investors Against Unlicensed FX, Crypto Brokers

Some of the listed firms are also involved in schemes to encourage ‎investors to ‎trade or invest in cryptocurrencies.‎

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 (, Thinking Ahead Ltd and Kitano Ltd ‎‎( and Solid Plus Ltd, which operates through the website ‎‎

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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.‎‏

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