Thursday, April 18, 2024

What warning did Italy issue over crypto exchange Binance?

The Italian Companies and Exchange Commission (CONSOB), the securities market regulator for Italy, has issued a statement in which they said that Binance Group as well as its affiliated companies weren’t authorized for operating and providing investment services in Italy. According to the regulator, this warning is for the main website of one of the most popular crypto exchanges in the world, CONSOB even went further and warned the public regarding the potential implications of legal status of Binance in Italy. They advised people to exercise caution while making their investment choices.

Italy is one of the increasing number of countries who have issued a public warning against the largest cryptocurrency exchange in the world by trading volume, Binance. CONSOB noted that in all cases, it is important that the investors are well-informed that their transactions related to crypto assets have risks that might not immediately perceptible because of their complexity, security vulnerabilities as well as high volatility. However, they declined to make a further comment on the issue.

Binance is currently facing a class-action suit from a group of international and Italian investors. A weeks ago, Lexia Avvocati, a legal firm based in Italy, announced that they will be taking a legal action against the crypto exchange for recovering damages from the trades made on Binance. They alleged that the company was violating its rules on the futures trading.

CONSOB is now one of the regulators who have issued warnings against Binance. Other countries who have made similar moves are Germany, the United States, the United Kingdom, Poland, the Cayman Islands, Singapore, Japan, Canada, and Thailand.


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