Nov 22, 2018
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Italian Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

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Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

Italy’s financial regulator, the National Commission for Companies and the Stock Exchange (CONSOB), has warned against three cryptocurrency companies engaged in schemes to promote cryptocurrency mining and investments. CONSOB said the companies were neither licensed nor authorized to provide the services they promised.

Also read: North Korea to Hold Crypto Conference in April

Cease and Desist Notice for Unlicensed Firms

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

On Nov. 20, the Italian regulator issued a cease and desist notice against foreign currency broker Richmond Investing, alleging it did not hold a valid license and was providing “unauthorised investment services and activities to the Italian public.” Richmond Investing promises investors high returns within a short period of time while claiming to provide integrated investment services for several assets, said CONSOB.

The unlicensed Crypton Ltd was suspended from offering its digital currency, called “crypton,” to the public for 90 days. The company claims to “provide passive income in the form of Proof-of-Stake mining that is available to all holders of the crypton coin.”

CONSOB also stopped Alessandro Brizzi from promoting the crypton token on his Facebook page, while Eagle Bit Trade was blacklisted, specifically for encouraging investors to use its “so-called trading packages” to transact in cryptocurrencies.

Eagle Bit Trade is a bitcoin trading platform that pays a bonus to “package holders” if they recruit a new member, with residual commissions earned as the pool or team members in this binary compensation setup grow. The platform claims to offer free registration to new users, “however, you must purchase a package before you can start earning money.”

Italy's Securities Regulator Warns Against Three Unlicensed Cryptocurrency Companies

Italy’s financial watchdog “started gathering information about these platforms after receiving complaints about them,” Finance Magnates reported. In June, Consob, an autonomous statutory body set up to help regulate Italy’s securities ‎‎and futures market, warned against four foreign currency brokers. It said the companies, Fah Investment Ltd, CFX Point Ltd, AJN Trade Ltd and Light Media Ltd, were not authorized to provide investment services in the country.

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