CONSOB Joins the List Of Regulators Warning Against Leading Crypto Exchange, Binance

Binance is not Authorized in Italy

According to the regulator, the newly issued warning referred to Binance.com, which crypto investors use to access crypto trading services. The regulator went ahead and urged investors to be cautious when making investments affiliated with Binance.

“Consob warns savers that the ‘Binance Group’ companies are not authorized to provide investment services and activities in Italy, not even through the website www.binance.com,” warned the regulator.

The ban comes when Binance is facing a class-action lawsuit from several Italian investors who have also teamed up with international investors.

Recently, Lexia Avvocati, a legal firm based in Italy, also announced it had opened legal action against Binance. The firm wants to recover damages accrued from various trades on the Binance platform, claiming that the exchange violated its guidelines regarding futures trading.

Binance Ongoing Compliance Wrangles

CONSOB joins the growing list of regulators warning their citizens from interacting with Binance because of compliance matters.

The UK Financial Conduct Authority (FCA) ignited the ongoing global scrutiny over Binance. The regulator issued a ban on Binance Markets Limited (BML), Binance’s affiliate in the UK. According to FCA, BML was not licensed to operate in the UK.

Following the FCA’s warning, it appeared as if the exchange’s operations had been affected. Binance exchange lost fiat liquidity after several leading banks in the UK, such as Barclays and Santander UK, moved to block user payments to Binance.com. This is one of the major blows Binance has suffered since the ongoing turmoil.

Because of the crisis in fiat liquidity, Binance suspended customer deposits made using the Single Euro Payments Area (SEPA), stating that the suspension was caused by “events beyond our control.” SEPA is a network that enables Binance users to send Euro in 36 countries.

The other countries that also issued warnings to Binance include the US, Japan, Cayman Islands, Thailand, and Poland. The Thailand Securities and Commission Exchange has also stated it will be filing criminal charges against Binance for offering services in the country without the proper licensing.

In Japan, the Financial Services Agency (FSA) stated that Binance offered services without authorization. Whether the ongoing compliance matters will stop and whether Binance will eventually achieve the required licensing and registration remains.

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