Italian Regulator Warns Investors Against Unlicensed FX, Crypto Brokers

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 Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, binary options brokers, and asset management providers, stating that the firms have been listed ‎as trading scams by other European financial regulators.‎

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 Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.‎ 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.‎‏