Authorities seemed to have taken a liking of sorts towards unauthorized crypto companies in a way that they started to terminate operations of these unlicensed crypto firms.
To begin with, CONSOB or the Commissione Nazionale per le Societa e la Borsa is a Government Authority in Italy, which keeps track of Italian Securities Market. It was this: Italian Companies and Exchange Commission that was responsible for discontinuation of some crypto businesses in the state of Italy.
Crypto Business of 3 Companies come to a Stand Still
Companies whose operations have been detested are all related to cryptos in one way or the other hence it was time for someone to take a note of deeds carried out by them before taking a final decision.
Companies such as Richmond Investing, Finatex Ltd. and CryptoForce have violated rules laid down by authorities and hence CONSOB decided to correct their wrongs.
11) Richmond Investing is a trading platform which did not go on to register under ‘financial intermediary’ thereby breaking the law governing the Italian Financial Markets known as ‘Consolidated Law on Finance’.
22) In a similar incident, German based Financial Regulatory Organization, BaFin took action against the authorities of Finatex Ltd. This company is based in the U. K. apart from having ties in crypto world. As per the statements released by the authority in charge, Finatex Ltd. worked without following any of the rules laid down by the German Financial Legislation.
Moreover, this is inclusive of the German Banking Act, so, it became a necessity for the officials to set right companies who opposed to the system to be followed.
3) Third in the list is CryptoForce and its crypto coin (read currency) named ‘Crypton’ had to be sacked according to the new laws put forth by the authorities from the E. U. Ministry.
For the uninitiated, CryptoForce is a company dealing for the most part in ‘PoS or Proof of Stake Mining’; it is also responsible for promoting its (own) Cryptocurrency that goes by the name: Crypton.
Advertisement of CryptoForce was carried out by Brizzi on social networking site Facebook whereas on the other hand, it was Eagle Bit Trade responsible for offering ‘trading packages to the Italian Investors’!
How Did CONSOB Deal with These Crypto World Discrepancies?
Back in E. U., things have begun to fall in place with strict rules and regulations being passed around. It was also a requirement of the hour that stood out because authorities from the think tank (called Bruegel) felt careful and an in-depth examination in to the working of crypto related firms is necessary that can never be given second thoughts.
Due to this, all digital currencies came under the radar especially of their aspect on how were these digital currencies got distributed among the investors!
A Plus Point: Good News for Cryptocurrencies in Italy
It comes as a shock for some but the Government of Italy seems to have not prohibited any of the financial institutions from using cryptocurrencies, however, they have asked them to wait a little more before Formal Rules and Regulations are put up!