Italy’s market regulator has belittled blockchain technology, especially as it decided to block several forex and crypto websites.
The Companies and Exchange Commission (CONSOB) has claimed that the websites were operating in the country without obtaining the necessary licenses. It added that the websites were encouraging illegal trade.
Previously, Italy’s market regulator said it took the shutdown decision as per the Consolidated Finance Law and Article 86 of Mifid2.
As per the law, the market watchdog can order investment institutions in the country to end their operations.
In addition, CONSOB had reviewed eight websites before deciding to close them as per Decreto Crescita law.
The law came into effect in July 2019, and since then the regulator ordered to close more than 80 websites.
In December, the regulator shut down two Forex and CFD brokers licensed by Cyprus Securities and Exchange Commission (CySEC). In addition, several companies like Hoch Capital and 24Option have also been barred from offering their services.
The guidelines of Italian Senate Committee on Corporate Affairs read:
“Legislative Decree No. 90 of 2017 subjected virtual currency providers to the regulations established for traditional money exchange operators. To that effect, Legislative Decree No. 90 charged the Ministry of the Economy and Finance to issue a ministerial decree setting forth the modalities and timelines for the legal performance of such activities throughout the country.”
Earlier, Cryptolydian reported that Altsbit, an Italian cryptocurrency exchange, will terminate its operations in May 2020.
The exchange has lost almost all coins in hack on 5 February.
Altsbit said on its Twitter account:
“Unfortunately we have to notify you with the fact that our exchange was hacked during the night and almost all funds from BTC, ETH, ARRR and VRSC were stolen. A small part of the funds are safe on cold wallets.”