Italy and Malta warn consumers about unregulated Binance activity

The Italian National Commission for Companies and the Stock Exchange (CONSOB) предупредила consumers that the cryptocurrency exchange Binance is not authorised to provide investment services or to carry out operating activities on Italian soil.

According to the press release, Binance Group has no right to operate in Italy, including through the binance.com website, even though its sections are translated into Italian.

The regulator warned of the risks of investing in digital assets, saying that this could lead to a total loss of invested funds. The regulator noted the volatility of these instruments, as well as the threats of infrastructure outages and cyberattacks.

The Malta Financial Services Authority (MFSA), in turn, reiterated to consumers that the regulator has not authorised Binance to conduct cryptocurrency-related activities on the territory of the country.

«Given recent warnings from competent authorities in other jurisdictions, as well as an uptick in complaints related to unlicensed entities, including Binance, the Authority would like to reiterate that Binance does not have a licence and is not authorised by MFSA to undertake any activity with virtual assets», the notice says.

In February 2020, the MFSA issued a similar warning.

At the end of June 2021, the British FCA forbade Binance Markets Limited from any regulated activity in the country without prior written approval. The exchange said that the entity in question did not provide services on the binance.com domain.

Following this, banks Barclays and Santander restricted transfers by UK customers to the Bitcoin exchange, and the payment processor Clear Junction declined to process related payments.

The Cayman Islands began a probe into Binance’s operations, Thailand accused the company of unlicensed activity, Japan issued another warning, and Polish regulators warned consumers about the risks of interacting with the platform.

Earlier, Binance ceased serving residents of Ontario, Canada and halted euro deposits via SEPA.

Against a backdrop of regulatory pressure, Chief Executive Changpeng Zhao published an open letter in which he outlined Binance’s plans to ensure compliance and protect customers.

Visa and Mastercard will not cease cooperating with the platform, despite regulators’ efforts, according to the Financial Times.

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