Italian finance regulator issues warning on Binance crypto exchange

Published at: July 15, 2021

Italy’s securities market regulator, the Italian Companies and Exchange Commission (CONSOB), has issued a statement, in which it said that Binance Group and affiliated companies are unauthorized to provide investment services and operate in Italy.

The regulator specified that the warning refers to Binance.com, the main website of the global crypto exchange. CONSOB went on to warn the public about potential implications of Binance’s legal status in Italy, advising to exercise caution in making investment choices.

Italy has joined the growing number of countries to issue a public warning regarding Binance, the world’s largest cryptocurrency exchange by trading volume.

“In any case, it is important that investors are informed that transactions in instruments related to crypto assets may pose risks that are not immediately perceptible due to their complexity, high volatility as well as for security vulnerabilities,” CONSOB noted.

CONSOB declined to further comment on the matter.

Related: ‘Compliance is a journey,’ says Binance CEO amid regulatory scrutiny

The latest warning comes as Binance faces a class-action suit from a group of Italian and international investors. Last week, Italy-based legal firm Lexia Avvocati announced a legal action against the exchange to recover damages from trades on Binance, alleging that the company violated its own rules on futures trading.

In serving the latest warning, CONSOB joins the increasing number of regulators that have issued warnings against Binance, echoing similar moves by authorities in Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, Singapore and the United States.

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