The CONSOB banned the Binance exchange from trading in Italy through both its companies and its website. The Italian agency warned about the possible risks of investing in cryptocurrencies such as Bitcoin.
In recent days, Italy’s National Securities Market Commission (CONSOB) released a statement about the Binance Group. They said that the companies belonging to the exchange could not offer investment services in the European country.
The text indicates that the prohibition includes offers on the website www.binance.com. The warning is general but refers specifically to the particularly controversial derivatives and company equity tokens.
Although it did not directly attack Binance, the Italian financial authority warned about the possible risks that trading cryptocurrencies represent. At the same time, they invited their citizens to be very careful to make conscious investment decisions.
According to the agency, cryptocurrency-related investment operations may pose risks not immediately noticeable. They claimed that cyberattacks on these instruments, their complexity, high price volatility, and malfunction are the reason for this.
The risks related to investing in cryptocurrencies are not the only reason why CONSOB has warned Italians. They also recommended that citizens verify that the Internet sites through which they make investments are duly authorized.
Binance Is in the Middle of a Hurdle Race
The Italian financial regulator released its statement amid the bans and legal issues that Binance is facing. According to data from LiveCoinWatch, this is the cryptocurrency exchange with the highest trading volumes worldwide.
As of early July, the exchange site was already facing regulatory hurdles in six countries. The United Kingdom, Singapore, Thailand, the Cayman Islands, Japan and Malaysia restricted Binance’s operations in their territories.
After that, the Chinese authorities blocked access to the platform’s website, just as they have done with those of other exchanges. At the same time, British financial services company Barclays prevented payments with debit or credit cards to Binance. They said they did so because they wanted to protect the money of the exchange’s customers.
How Binance Responds to Regulations On Its Operations
Binance has expressed its intention to comply with the regulations in each country where it trades. In addition, it has promised to observe the so-called Financial Action Task Force (FATF) travel rule by sharing its customers’ data with other exchanges. However, they have not yet given a response to the ban that Italy has imposed on them.
Besides, they have maintained a policy of cooperation with the authorities in investigations related to money laundering or scams. For example, at the end of June, the exchange provided information that helped prevent cybercriminals from laundering money on its platform.
The fear among world authorities to using cryptocurrencies has led them to tighten their regulations on those assets. In that sense, several countries have limited the operations of exchanges and have warned their citizens not to invest in them. Given the growing relevance of cryptocurrencies in the world economy, that situation will continue to happen.
By Alexander Salazar