CONSOB, the Italian market regulator has blacked out five new websites focused on forex and cryptocurrencies. The total number of blacklisted sites has now gone up to 300.
Long-running campaign against unregulated firms
CONSOB has been working on a long-running campaign against numerous forex websites operating in the country, including those that are licensed in foreign jurisdictions. The watchdog recently banned five new forex websites for promoting forex and cryptocurrency trading products in the country illegally.
The five banned websites include the Digital Exchange Limited and Securex Plus Solutions EOOD (www.dgxlimited.com, Fintech Software Inc, Oproserv Limited Leadernet OU (www.fx-leader.com), Raw Trading Ltd (www.icmarkets.com), Brokermasters Ltd (www.brokermasters.net) and GrahamFE FinServices LTF and Elit Property Vision LTD (www.grahamfe.com). The total number of sites blocked by the regulated since July 2019 has now risen to 300.
What is common among the recently backlisted sites?
The blacklisted websites were offering forex and CFDs trading. The CONSOB also says that some of the names featured in the list also deal with cryptocurrency assets, either as underlying coins or as CFD- like derivatives. CONSOB has refined its process for identifying companies that don’t comply with its rules.
The regulator recently crackdown on a few brokers licensed by the Cyprus Securities and Exchange Commission. It ordered the companies to cease operations. With the decision, Cypriot intermediaries were also prohibited from soliciting customers and had to end their ongoing relationships with Italian clients. The regulated cited article 7-quarter, paragraph 4 of the Consolidated Law on Finance (TUF), as well as article 86 of Mifid2 to justify its decisions. This legislation helps the investment firms and brokers operating in a European state to cease their work after informing the competent authority of the member state where the firm is based.
The regulator received more powers because of the Growth Decree which allows it to order Italian ISPs to block websites in the region.
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