CONSOB is the central securities regulator in Italy. The federal exchange regulator recently issued a public warning on its official website. The warning informs public investors that Binance Group and its affiliated services are not registered and have no legal approval to provide investment services in Italy.
According to CONSOB, the retail and institutional consumers in the country are advised against using Binance for availing of any trade services. Binance is the main website of the crypto exchange platform, with 5.8 million active users around the globe. Italy has joined a long list of countries where Binance is facing regulatory scrutiny by issuing these warnings.
At present, Binance is the largest exchange platform in the world by trading volume. The native token of Binance BNB has become the 3rd largest cryptocurrency by market cap and is trading for $315.33 at press time. On the other hand, Binance has also launched a dedicated blockchain ecosystem called Binance Smart Chain (BSC), and it also operates a dedicated NFT market called Binance NFT.
However, the Italian regulator CONSOB claims that many investors are not aware of the financial risks that are related to crypto trading. The regulator also added that due to the complexity, price volatility, and security threats, many investors tend to overlook the risk involved with crypto trading on the whole. There have been many incidences in Italy where investors lost a huge amount of money after investing in different Binance projects.
Binance is Facing a Class-action Lawsuit in Italy
It is not difficult to imagine the inspiration behind CONSOB’s recent stance on Binance. The crypto exchange platform is currently dealing with a class-action lawsuit in Italian courts. Lexia Avvocati is a local law firm that has filed a lawsuit. The prosecution team consists of many Italian and a group of international investors.
The lawsuit aims to recover losses and claims damages from Binance. The prosecution claims that Binance has violated its internal rules for futures trading. The regulatory unrest keeps increasing as several other countries like Japan, Cayman Islands, UK, Canada, Thailand, Germany, Singapore, Poland, and United States authorities are also at odds with Binance.