The calls by a group of think tanks in Bruegel is bearing fruits after the Italian watchdog issued several warning to some crypto companies operating within its borders. In its recent warning, the Commissione Nazionale per le Società e la Borsa (CONSOB) has issued a cease order to three firms alongside an individual promoting Cryptoforce company. According to information on its official website, the order was sent to the three firms on November 19.
The three firms slapped with the cease and desist order from CONSOB are Richmond Investing, Eagle Bit Trade, and Crypton Ltd alongside Alessandro Brizzi. For Alessandro Brizzi, he was banned for promoting Cryptoforce Ltd on his Facebook page. CryptoForce was a PoS mining firm that was offering Proof-of-Stake services to investors and was promoting Cryptona cryptocurrency. On the other hand, Eagle Bit Trade got the order after it was discovered they were violating the Consolidated Law on Finance (TUF). The two were banned for a period of 90 days because of offering financial service without authorization.
Similarly, Richmond Investment firm was issued with the cease order after the Italian Securities market regulator discovered it was also violating the Consolidated Law on Finance (TUF) by operating its trading platform without legal papers. For that, the regulator ordered Richmond Investment to cease operating its platform.
Other Regulator Issuing Cessation Orders
Across borders, the German financial regulator (BaFin) had to issue a cease and desist order to Finatex Ltd. The latter was also operating its business without approval from BaFin. Finatex Ltd is based in the UK. Besides the two incidences, many crypto regulators across the globe are being forced to issue such orders to industry players for not getting the legal papers. In addition to setting up cryptocurrency watchdogs, they governments are also working around the clock to put in place legal framework.
For Italy, the government has not yet put in place a legal and formal cryptocurrency framework but at the same time has not banned the use of cryptocurrency. Similarly, financial institutions in the country haven’t been prohibited from offering financial services related to cryptocurrency. It’s just recently that the Ministry of Economics released contents of a decree which had set plans in motion to list service providers in the cryptocurrency industry. Furthermore, the decree would also pave the way for the classification of cryptocurrency usage in the country.