The regulatory challenges facing crypto exchange Binance don’t seem like they would go away anytime soon, with Italy’s regulatory agency announcing that the platform is operating unauthorized in the country.
CONSOB Says Binance Is Unauthorized
CONSOB, the financial market’s regulator in Italy, announced yesterday that the world’s largest cryptocurrency exchange is operating without a license in the country. The regulator has issued a warning to Binance and advised Italians to stay away from the platform.
The regulatory agency announced this on its website yesterday, stating that all companies associated with Binance Group don’t have the permission to provide investment services and activities in Italy. CONSOB said even Binance.com that has its derivatives and stock token platforms written in Italian, is operating without a license.
The regulator, keeping in line with other regulatory agencies globally, also warned its citizens against trading cryptocurrencies. CONSOB said cryptocurrency investments should be conducted with caution as the traders and investors stand to lose all their money in the market.
CONSOB wrote that investors and traders should know that transactions in instruments related to cryptocurrencies could present certain risks that are immediately seen. This is due to the complexity, high volatility of the prices of he assets. The regulator also cited othe vices such as the cyber-attacks that cryptocurrency projects may be subjected to.
Binance Coin (BNB) Down By 4%
The news that Italian regulator CONSOB has issued a warning against Binance saw its native coin, the BNB, lose over 4% of its value in the past 24 hours. BNB is currently struggling to stay above the $300 mark and could sustain further losses if more negative news emerges over the next few days.
Despite the recent dip, BNB’s price is up by nearly 1000% year-to-date. BNB was trading at $38 per coin at the start of the year, but it is now trading above $300.
CONSOB is the second major regulator to warn Binance in the past month. In June, Britain’s Financial Conduct Authority (FCA) banned Binance Markets Limited from operating in the UK since it doesn’t have a license. The ban has seen some financial institutions such as Barclays, Santander and Clear Junction all end ties with the exchange, making it impossible for their customers to fund their Binance accounts.