Italy’s Consob Orders Eight FX and Crypto Websites Blocked

Consob, the Italian securities regulator, has dropped the hammer on yet another number of FX websites it says was promoting trading products illegally in the country. It has contacted Italy’s’ internet service providers (ISPs), requesting that they block access to all of the sites for not obtaining the requisite licenses to provide their services in the country.
In total, eight sites were targeted through the latest clampdown, which has been supported by the “’ law, which allows CONSOB to obstruct Italian investors’ access to online brokers. The regulators took similar action throughout the past few months, ordering nearly 150 domains to have their access withdrawn, although the work needed to document and block these sites tends to be complicated.

Six of today’s blacklisted sites offer forex and CFDs trading. The CONSOB warning also features the names of two businesses that are dealing in crypto assets, either in the form of the underlying coins or its related derivatives such as CFDs.
The list of sites to be blocked include, among others, Trade Com Limited (website https://fxonspot.com); “cryptobase” (websites https://cryptobase.ltd and https://cryptobase.life); “GotechFX” (website https://gotechfx.com); Waltika Partners LTD (websites https://alliance-capital.io and https://alliance-capital.cc); GAM Group Ltd – “MarketsFX” (website https://www.marketsfx.it); Honest Capital Ltd (website www.profx247.com).
The crackdown comes after Consob has “refined” its process for identifying non-compliant companies. This past December, the regulator went after two CySEC-licensed Forex & CFD brokers and ordered them to cease operations in the country. 24Option and  were barred from providing investment services in Italy. The decision also prevents the Cypriot intermediaries from soliciting customers or continuing its current relations with Italian clients.
At the time, Consob clarified that it made the latest decision under the article 7-quarter, paragraph 4 of the Consolidated Law on Finance (TUF), as well as article 86 of Mifid2. This legislation allows CONSOB to order investment firms and brokers operating in the country from another EU member state, through the EU passporting regime, to cease their operations after informing the competent authority of the member state.

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