Italy’s Watchdog Adds TradesFX to Its Caution List

The CONSOB warning list features the names of businesses that are unlicensed in Italy.

La Commissione nazionale per le società e la Borsa (CONSOB) has updated its blacklist with another unlicensed FX broker firm called TradesFX.

CONSOB explained that the company, doing business at the website, operates a foreign exchange platform that offers related trading services but doesn’t hold the appropriate license or authorization to do so in Italy.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

The CONSOB warning list features the names of businesses that are unlicensed in the country, and which are also believed to have targeted local investors or made fraudulent claims to be associated with regulated entities.

TradesFX, according to its website, claims to be incorporated under the laws of the St. Vincent & Grenadines (SVG), a well-known offshore zone with very lax tax and legal requirements for registered businesses.

Suggested articles

Axia Extends Market Footprint in GCC RegionGo to article >>

CONSOB turns eye to crypto

In addition to its regular warnings against FX and binary options brokers, the Italian regulator has also ‎stepped up its game and gone after illegal cryptocurrency brokers. The CONSOB 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 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.‎

Got a news tip? Let Us Know