Yet again, Binance faces scrutiny from Italy as it warns of it’s lack of regulation. The Italian securities regulator CONSOB announced that the Binance Group is not authorized to provide investment services and activities in Italy.
In the press release, CONSOB included a more general warning about investing in cryptocurrencies, stating:
“Savers are invited to adopt the utmost caution in making transactions on instruments related to crypto assets, for this may imply the total loss of the sums of money invested.”CONSOB
In response, a spokesperson from Binance assured Italian customers that the CONSOB notice would not impact the exchange’s services, as the Binance website operates outside of Italy.
CONSOB, the financial market’s regulator in Italy, announced that the world’s largest cryptocurrency exchange is operating without a license in the country. The regulator has issued a warning to Binance and has advised Italians to stay away from the platform.
Binance faces scrutiny in multiple countries
The regulatory agency announced this on its website , stating that all companies associated with Binance Group don’t have the permission to provide investment services and activities in Italy. CONSOB said even binance.com has its derivatives and stock token platforms written in Italian, is operating without a license.
Keeping in line with other regulatory agencies globally, also warned its citizens against trading cryptocurrencies. CONSOB said cryptocurrency investments should be conducted with caution as the traders and investors stand to lose all their money in the market with Binance facing scrutiny.
CONSOB wrote that investors and traders should know that transactions in instruments related to cryptocurrencies could present certain risks that are immediately seen. This is due to the complexity, high volatility of the prices of the assets. The regulator also cited other vices such as the cyberattacks that cryptocurrency projects may be subjected to Binance facing scrutiny.
The latest development in Italy echoes the warning issued by the U.K. regulatory watchdog, the Financial Conduct Authority (FCA). The FCA told Binance it was not permitted to undertake any regulated activities without the prior written consent of the FCA. While the warning only resulted in prohibiting crypto derivatives such as futures contracts, the announcement was not taken lightly by U.K. banks. Several banks, including Barclays and Santander, have blocked payments to the exchange for U.K. customers, directly citing the FCA’s notice.
Banks are not the only organizations taking issue with Binance’s lack of regulation. Binance temporarily suspended withdrawals for pounds, sterling and euros, likely due to digital payments processor Clear Junction cutting ties with the exchange.
While Binance faces scrutiny from Italian regulators, the company does not believe this will immediately impact Binance’s services in the country as yet though the responses from the U.K. shows that the situation can escalate quickly.
Despite Binance’s regulatory troubles, the exchange is maintaining its market position as the biggest crypto exchange globally with more than twice as much as its closest competitors.