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Italian finance regulator issues warning on Binance crypto exchange

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Italian securities regulator Consob has warned that Binance is not licensed to operate in Italy.

Consob is on a long list of regulators warning local users that Binance not licensed to operate in their countries. Previously, such warnings were issued by regulators of Poland and Japan.

“Consob warns investors that Binance group companies not authorized to provide investment services and conduct business in Italy. Including through the Binance.com website”, the regulator said in a statement.

Thus, the department separately noted that the warning applies not only to a legal entity. But also to the Binance.com website, which offers the relevant services.

Binance translated the site’s interface into Italian back in 2018, but even this fact did not affect CONSOB’s opinion.

Warnings will not affect the operation of Binance?

According to a Binance spokesman, the warning will not affect the operation of the site and the exchange in general.

Binance’s press office said the agency’s statement is not directly related to the marketplace as it operates outside of Italy. He added that he takes his obligations to regulators and compliance with regulations very seriously. Keeping track of all developments in this area.

Maximum caution in cryptocurrency transactions

Consob urges investors to exercise “utmost caution” when using financial products on the Internet. And to check if their suppliers have official authorization from the authorities. Separately, the department allocates operations with cryptocurrencies, investments in which can result in loss of assets.

“It is important that investors are aware of the risks of cryptoassets, which may not be obvious due to their complexity”, the regulator adds.

Previous warnings regarding Binance

Earlier, the British regulator FCA banned Binance from providing some of the services to users from the UK. Against this background, some banks have banned deposits from their cards to this exchange. Among these banks were such giants as Barclays and Santander.

The Malta Financial Services Authority (MFSA), in turn, reiterated to consumers that the agency did not allow Binance to conduct cryptocurrency-related activities in the country.

“Due to recent warnings from competent authorities in other jurisdictions, as well as an increase in the number of complaints related to unlicensed organizations, including Binance, the Office would like to reiterate that Binance not licensed or authorized by the MFSA to carry out any activity with virtual assets”, said in the notification.

In February 2020, the MFSA issued a similar warning.

The Cayman Islands have begun testing the exchange.

Regulators are usually limited to warnings. But the Securities Commission of Thailand (SEC) said it has opened a criminal case against the cryptocurrency exchange Binance on charges of illegal financial transactions.

Amid pressure from regulators, CEO Changpeng Zhao issued an open letter in which he spoke about Binance’s plans to ensure compliance and protect customers.

Recall that payment systems Visa and Mastercard will not refuse to cooperate with the platform, despite the efforts of the supervisory authorities. Visa and Mastercard noted that they are aware of the regulatory warnings regarding Binance and that they are monitoring its compliance with regulatory requirements.

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