The regulatory climate has always been a major cause of concern for the cryptocurrency and the blockchain market. This has mainly been due to the incessant clamping down of features due to written laws and context.
Italy has become the latest country to strike against new technologies when the Consob, the country’s securities regulator blocked access to multiple forex and crypto websites
Consob claimed that the websites were operating in the country without the requisite licenses. The body further added that the websites were promoting trading products illegally in Italy. The Consob stands for the Commissione Nazionale Per Le Societa Borsa and is tasked with maintaining the financial harmony.
The blocked sites were Trade Com Limited ( https://fxonspot.com); “cryptobase” ( https://cryptobase.ltd and https://cryptobase.life); “GotechFX” (https://gotechfx.com); Waltika Partners LTD (https://alliance-capital.io and https://alliance-capital.cc); GAM Group Ltd – “MarketsFX” (https://www.marketsfx.it); Honest Capital Ltd (www.profx247.com)
Consob had earlier claimed that it makes its shut down decisions based on the Consolidated Law on Finance and the article 86 of Mifid2. This piece of legislation allows the body to ask investment organizations from other countries to close shop within their jurisdiction.
The body scanned and checked multiple websites before deciding to shut down eight of them. Consob is supported by the Decreto Crescita law in this regard, that allows the body to forcibly move on websites. It first received its powers in July 2019 and since then Consob has shut down more than 80 websites.
In December alone. Consob went after two CySEC-licensed Forex and CFD brokers and inevitably shut down their operations in Italy. Other companies such as Hoch Capital Ltd and 24Option were also barred from providing their services.
The Italian Senate Committee on Corporate Affairs has also been involved in such financial legislation. Its guidelines include:
“Legislative Decree No. 90 of 2017 subjected virtual currency providers to the regulations established for traditional money exchange operators. To that effect, Legislative Decree No. 90 charged the Ministry of the Economy and Finance to issue a ministerial decree setting forth the modalities and timelines for the legal performance of such activities throughout the country.”
Giulio Tremonti, the former Minister of Economy and Finance also voiced his opinions on crypto and new-age technologies. According to him, banks and other financial bodies should work with digital industries to grow. Tremonti urged bodies to consider such changes keeping in that the values remain the same.