French and Italian Regulators Perform Crackdown on Crypto Scams

French and Italian regulators have been looking to curb illicit activity in the digital asset sphere.

Just days after the European Union announced a collective decision to implement comprehensive cryptocurrency regulations by 2024, Finance Magnates reported that financial regulators in France and Italy respectively have been performing a crackdown on scams and fraud involving cryptocurrency.

France’s senior financial regulating body recently published a list of investment websites unauthorised to operate in that country. Amongst them were a few cryptocurrency or digital asset provider websites.

This came in the wake of a number of warning sirens coming from a company suspected of investment fraud, BitcoinFrance. The company claimed to offer registered users their own bitcoin software after they had deposited $250 into the company’s account. They further made bold claims to potential customers that the website could guarantee bitcoin earnings of $1,000 per day. These signals are all noted examples of possible cryptocurrency scams. As a result, Paris has pledged to put an end to such practices in the country.

Moreover, France’s Pacte Law obliges cryptocurrency exchanges and other industry players to register with the relevant financial regulators upon inception. Exchange platforms, custodians, and asset managers are all required to register by this law.

Meanwhile, Italian regulators continue to crack down on unlicenced and unregistered cryptocurrency service providers. Offshore traders have reportedly often abused grey areas in Italy’s market to conduct illicit financial deals, including in the cryptocurrency industry.

Moreover, in February, Currency.com reported that Italy’s security regulator, CONSOB, had shut down six foreign exchange and two cryptocurrency trading websites. These websites had been operating illegally and outside of the country’s laws regarding the sphere.

The EU’s proposed comprehensive crypto regulations hope to curb widespread crypto fraud, scams, and other malpractices associated with digital assets.

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Raïs Tarek 87 Articles
Journalist and lawyer, with a passion for global politics, economics and current affairs.