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Italian Regulator Issued a Warning Regarding Binance

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Italian Regulator Issued a Warning Regarding Binance

The Italian Companies and Exchange Commission (CONSOB) issued a statement on July 15. In its statement, CONSOB said that Binance Group and affiliated companies are not authorized to provide investment services and operate in Italy.

The CONSOB noted  that the warning refers to the main website of the global crypto exchange. The regulator warned citizens about the potential implications of Binance’s legal status in Italy, advising them to exercise caution in making investment choices. Investors should keep in mind that transactions in instruments related to crypto assets may pose hidden risks.

The latest warning from the regulator comes as the crypto exchange faces a class-action from Italian as well as international investors. Also, this month, a legal firm Lexia Avvocati announced legal action against Binance. The lawsuit prepared by Lexia Avvocati centres around Binance going offline for several hours on different days. The investors in the class-action lawsuit claim that they lost millions of dollars due to the crypto exchange.


Binance and regulators

The Italian regulator joined the growing number of regulators to issue a public warning regarding the largest crypto exchange in the world. The world’s largest crypto exchange by trading volume has to deal with numerous challenges.

On July 7, the Polish Financial Supervision Authority (PFSA) also warned about risk factors. The PFSA noted Binance’s operations have no regulations in Central European countries. The PFSA mentioned its January warning regarding the general risks of investing in cryptocurrencies.

The regulator mentioned several regulatory warnings against Binance by global regulators in its statement. The German Federal Financial Supervisory Authority, the U.K.’s Financial Conduct Authority also issued similar warnings.

Two weeks ago, Thailand’s Securities and Exchange Commission (SEC) made an unimportant announcement. The agency announced that it filed a criminal complaint against the crypto exchange. A day earlier, another regulator, this time from the Cayman Islands, announced that Binance and its affiliated companies are not registered and licensed to operate a crypto exchange in the Cayman Islands.

The Cayman Islands Monetary Authority (CIMA) noted that none of the entities mentioned in their statement are subject to its oversight. However, they plan to find any other entity connected with the crypto exchange that operates in or from the country.

The crypto exchange is also subject to regulatory investigations and reviews in Canada, Japan, Singapore, as well as, the U.S.


The post Italian Regulator Issued a Warning Regarding Binance appeared first on FinanceBrokerage.

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