The regulatory pressure on Binance is growing, as Italy joins the list of countries that have sent notices about the world’s largest cryptocurrency exchange by trading volume.
The Commissione Nazionale per le Società e la Borsa (CONSOB), the Italian government agency in charge of regulating the country’s stocks market, has issued a warning stating that Binance is not authorized to perform services in Italy.
Identified as unauthorized
“Companies of the “Binance Group” are not authorized to provide investment services and activities in Italy, including through the website www.binance.com, whose sections called “derivatives” and “Stock Token,” relating to instruments related to crypto-assets, were previously also written in Italian,” said Italy’s securities regulator CONSOB in a statement released yesterday.
Without explaining why the exchange was singled out, CONSOB simply advised savers to “use their utmost caution in order to make their investment decisions in full awareness, verifying in advance that the websites through which they make the investment may be traced to authorized subjects.”
The government agency went on to warn “savers” about cryptocurrency investments, saying that they “may indicate the whole loss of the sums of money invested.”
Cryptocurrency investments, according to CONSOB, involve “not immediately visible” dangers due to their complexity, high fluctuation of prices, as well as malfunctions and cyber attacks.
Rapid expansion is posing issues.
Binance has recently come under fire from regulators in a number of countries, including the United States, Japan, the United Kingdom, and the Cayman Islands.
Customers of British banks Barclays and Santander are no longer able to make payments to Binance, and Thailand’s financial watchdog has filed a criminal complaint against the exchange for operating without a license.
Changpeng Zhao, the company’s founder and CEO, sent a letter in which he conceded the company hadn’t gotten “everything right” due to its rapid expansion, which may slow due to legal and regulatory challenges it confronts on multiple fronts.