Italy issues warning against top cryptocurrency exchange Binance

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Binance is unauthorised to carry out activities in Italy, as Companies and Exchange Commission (CONSOB), the market regulator of Italy issued a warning on Thursday. Italy has joined the list of global regulators warning against the cryptocurrency exchange recently. Earlier other countries such as U.S., Japan, Poland and Thailand either moved or issued warning against the exchange. Recently, the U.K.’s Financial Conduct Authority (FCA) also banned Binance Markets Limited (BML).

CONSOB warned savers that the companies of the “Binance Group” are not authorized to provide investment services and activities in Italy, not even through the website www.binance.com whose sections called “derivatives” and “Stock Token”, relating to instruments related to crypto-assets, were previously also written in Italian.

“Furthermore, savers are invited to adopt the utmost caution in making transactions on instruments related to crypto-assets, for this may imply the total loss of the sums of money invested and it is recommended to savers to always follow the general rule of considering the signing of contractual proposals only when they have an adequate understanding and only when they are assisted by clear and complete information also on the identity of the contractual counterparty who may propose himself as a service provider,” the press release stated.

The release further stated in any case it is important that savers are informed that transactions in instruments related to crypto-assets may present risks that are not immediately perceptible, due to their complexity, the high volatility of the prices of these instruments as well as for malfunctions and cyberattacks to which the IT infrastructures used for such operations may be subjected.

Reserve Bank of India (RBI) has many times issued a warning while maintaining a stance of a complete ban on virtual currencies. The regulator has issued the warning in the past as well that any user, holder, investor or trader dealing with virtual currencies should do at his own risk