As agencies and governments all over the world continue to glean for a solid legal framework regulating cryptocurrencies and digital assets, the Commissione Nazionale per le Società e la Borsa (CONSOB) of Italy has made a swift decision to address loose ends regarding three local companies offering cryptocurrency related services by ordering a cease-desist action.
The report comes after CONSOB published a public statement on its official website regarding Richmond Investing and two other companies after they appeared to provide unauthorized crypto-investment services. While there is no other parent legal framework regulating cryptocurrencies affairs in Italy exclusively, the unauthorized services provided by the companies conciliates with the financial activities that CONSOB oversees.
Richmond Investing, one of the first companies issued a warning statement via the public release, was found violating one of the principal regulations of the Financial markets in Italy, which required it to be officially registered as a mediator offering finance-related services in Italy. By contravening the principal Consolidated Law on Finance (TUF), Richmond Investing has been slapped with an active suspension spanning months.
Per the public release also, two other companies likewise invited CONSOB’s suspending action after contravening different sections of the law, other than registration. Crypton Limited has been handed a suspension of three months (90 days) after the company was reported of making inappropriate promotions and advertisements.
The company, which basically offered Proof-of-Stake (PoS) mining services, had been discovered making advertisements and promotions of “Crypton,” predictably a cryptocurrency it was affiliated with. Eagle Bit Trade is the last company on the public release which got the same penalty as the aforementioned company after apparently also offering to investors in Italy wildcat trading packages.
Amidst determined and necessary actions made by CONSOB, the Italian government continues to seek a formal framework for cryptocurrency related business, as it builds on its proposal for crypto regulation made earlier this year in March.