Italian Securities Regulator ceased Unlicensed Cryptocurrency Companies

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February 12, 2020 1:37 pm

Italian Securities Regulator ceased Unlicensed Cryptocurrency Companies
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Italy’s securities regulator, the National Commission for Companies and the Stock Exchange (CONSOB), has ordered the black-out six foreign exchange websites and two crypto investing and trading sites. CONSOB declared the companies offer financial services illegally and were not even licensed.

Notice Against Foreign Currency

The Italian regulator issued a notice on Nov. 20, against foreign currency stockbroker Richmond Investing, declaring it did not hold a valid license and was giving “unauthorised investment services and ventures to the Italian public.”

Richmond Investing promises investors high returns within a short period while claiming to provide joined investment services for several assets, said CONSOB.

Another unlicensed Crypton Ltd was barred for 90 days from releasing its “Crypton” digital currency to the public. The company claims to “provide a passive income in the form of Proof-of-Stake mining that is convenient to all holders of the Crypton coin.” while Eagle Bit Trade was blackballed, particularly for promoting investors to practice its “so-called exchanging units” to transact in cryptocurrencies. 

Regulation of Cryptocurrency Around the World

The terminology used to represent Cryptocurrency varies from one jurisdiction to another. Some of the names used by countries to reference cryptocurrency include- digital currency (Argentina, Thailand, and Australia), virtual commodity (Canada, China, Taiwan), crypto-token (Germany), payment token (Switzerland), cyber currency (Italy and Lebanon), electronic currency (Colombia and Lebanon), and virtual asset (Honduras and Mexico).

Some jurisdictions have gone even further and inflicted restrictions on expenditures in cryptocurrencies, the extent of which varies from one jurisdiction to another. Some (Algeria, Bolivia, Morocco, Nepal, Pakistan, and Vietnam) ban any activities involving cryptocurrencies.
Qatar and Bahrain have a slightly different strategy in that they bar their residents from engaging in any kind of activities involving cryptocurrencies locally but allow citizens to do so outside their edges.

There are also countries that, while not banning their nationals from investing in cryptocurrencies, force indirect restraints by banning financial institutions within their borders from promoting transactions involving cryptocurrencies (Bangladesh, Iran, Thailand, Lithuania, Lesotho, China, and Colombia).
Not all countries see the arrival of blockchain technology and cryptocurrencies as a threat, albeit for various reasons. Some of the jurisdiction examined, while not recognizing cryptocurrencies as legal tender, see a potential in the technology behind it and are improving cryptocurrency-friendly regulatory management as a means to draw investment in technology companies that surpass in this sector. In this class are countries like Spain, Belarus, the Cayman Islands, and Luxemburg.

Source: https://www.loc.gov/law/help/cryptocurrency/world-survey.php

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