The Italian regulator, Commissione Nazionale per la Societa e la Borsa (CONSOB), has suspended the operations of Alicante and Glasgow-headquartered Cryp Trade Capital for a period of 90 days in Italy for carrying out financial dealings without the necessary authorisation.
CONSOB found several irregularities in the operations of the company during an investigation.
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The company via its website – cryp.trade – has made an “Offer to the public” of an investment portfolio which promises monthly returns of between 17.7% and 29.7% of the invested capital. The site indicates the percentages and the frequency of returns linked to the purchase of various types of investment portfolios offered to users.
CONSOB found that the financial product overlay is one associated with pyramid schemes. The company has also failed to provide information requested by CONSOB on two separate occasions – 19 July 2017 and 18 August 2017.
Cryp Trade Capital has been found to have violated Article 94 (1) of the Consolidated Law on Finance. The following observations were by CONSOB:
- The company has not published or submitted the prospectus with the regulatory authority before offering investment portfolios to the public at large
- Well-founded suspicion of promoting an offer to the public of financial products in breach of the relevant regulatory and regulatory provisions
- The company is still issuing financial products after the objection made by CONSOB.
The warning letter comes after a week in which CONSOB has issued warnings against a host of unauthorised companies operating in Italy.