Italian Securities Watchdog Orders Unauthorized Crypto Companies to Cease and Desist

November 21, 2018
68 Views

Italian securities watchdog CONSOB has ordered cease and desist orders on several crypto-related firms for offering unauthorized financial services.

The Commissione Nazionale per le Società e la Borsa (CONSOB) has ordered three crypto-related companies providing unauthorized investment services to cease and desist, an official release states Monday, Nov. 19.

The first company, a trading platform called Richmond Investing, has purportedly violated the Consolidated Law on Finance (TUF) — a fundamental law governing Italian financial markets — by failing to register as a financial intermediary in the country.

The  Italian securities market regulator has also suspend the activities of two other companies, Crypton Ltd. and Eagle Bit Trade, along with individual Alessandro Brizzi representing Cryptoforce Ltd., for 90 days.

According to the release, CryptoForce, a company specializing in Proof-of-Stake (PoS) mining, promoted a cryptocurrency dubbed “Crypton.” Brizzi was advertising CryptoForce on Facebook, while Eagle Bit Trade offered ostensibly unauthorized “trading packages” to Italian investors.

The CONSOB enforcement action comes amid recent calls to tighten crypto regulation in the E.U. In September, Brussels-based think tank Bruegel called on E.U. ministers for more scrutiny on how digital currencies were distributed to investors.

In November, German financial regulator BaFin ordered partial cessation of activities by U.K.-based crypto-related firm Finatex Ltd. The company was ordered to cease trading as its activities were not approved by German financial legislation, including the German Banking Act.

While Italy does not have a formal framework for crypto business, in March, the Italian Ministry of Economics announced the creation of a decree that would classify the use of cryptocurrencies in the country and list service providers related to digital currencies.

According to Finance Magnates, the Italian government has not prohibited financial institutions from dealing with cryptocurrencies, but rather recommended that they wait until formal regulations are introduced

You may be interested

Crypto and Forex Scam Reports Tripled in the UK Last Year, Watchdog Says
Crime
26 views
Crime
26 views

Crypto and Forex Scam Reports Tripled in the UK Last Year, Watchdog Says

btcethereumadmin - May 21, 2019

Reports of cryptocurrency and foreign exchange scams in the U.K. grew threefold in the last financial year – spiking to…

NYSE Arca Seeks Rule Change to List ETF Backed by Bitcoin and T-Bills
Crypto News
45 views
Crypto News
45 views

NYSE Arca Seeks Rule Change to List ETF Backed by Bitcoin and T-Bills

btcethereumadmin - May 21, 2019

NYSE Arca has formally applied to the Securities and Exchange Commission (SEC) for a rule change that would allow it…

Bitcoin Price Analysis: Strong Selling With Weekly Level Getting Tested
Bitcoin
51 views
Bitcoin
51 views

Bitcoin Price Analysis: Strong Selling With Weekly Level Getting Tested

btcethereumadmin - May 21, 2019

Summary: The market is seeing a current rejection of the weekly level outlined in 2018’s bull market. The zone between…

Leave a Comment

Your email address will not be published.