Italian financial regulator, CONSOB, has added five new websites to its blacklist. The watchdog announced that the websites are illegally promoting investment products in the country. CONSOB has shown intensity in its resolve to keep the market safe for investors. The watchdog has maintained a high level of discipline and regulation in the industry, sweeping unscrupulous firms without proper registration or licensing in the country.
The newly blacklisted websites include some FX platforms that operate offshore without any regulatory status.
However, the regulator pointed out that some of the blacklisted sites are offering services related to crypto-assets, either related to derivatives like CFDs or dealing with underlying coins.
645 Sites Now Blacklisted Since 2019
Following the addition of the five websites, the regulator has now blacklisted 645 websites since June 2019.
The blacklisted websites include https://tradon.io (Ingenue Consulting LLC), www.delitraders.net (Miva Solutions LLC), https://solidstocks.cc (Scintilla Enterprise Ltd), https://equalityfin.com (“EqualityFin”), and www.trustpixs.com (Trust Pixs Limited).
The crackdown is coming after the watchdog refined its process of identifying companies that are not compliant with the regulation.
CONSOB has also taken its crackdown exercise to some CySEC-licensed brokers, ordering them to close their operations in the country. It meant that Cypriot intermediaries will not be able to solicit customers or continue engaging clients in the country.
CONSOB Gets More Power To Block Sites
The regulator has intensified its watch over the market since its ‘Growth Decree’ empowered it to carry out certain actions against offenders. The decree gave CONSOB the right to order Italian internet service providers (ISPs) to block sites that do not meet the regulatory requirements. However, the blacklisted sites do not appear on the CONSOB site immediately, as it can take several days due to technical delays.
But the impact of the exercise is already felt in the region. CONSOB says it has seen an improvement in the number of companies that want to register and comply with the regulatory standards.
Apart from unregistered firms, the watchdog is also looking into the activities of licensed firms. CONSOB recently warned authorized firms against providing false or misleading products and giving the regulatory status. CONSOB warns that such financial promotions go against the requirements for companies when marketing their products and services in the country. The Italian watchdog, therefore, warned that there are sanctions and fines for even authorized firms that do not stay within the scope of the law.