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Italy joins Japan, UK, and others in issuing a notice against Binance

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Binance has garnered another warning from a brand new regulator. Italy had jumped on the bandwagon after Japan, UK, Cannada, Poland, Thailand, and the Cayman Islands.

Prominent cryptocurrency exchange, Binance, was flourishing right after the crypto-verse began booming in terms of price. As the industry’s popularity advanced, crypto exchanges, prevalent ones like Binance, welcomed an array of new members into the market. This streak was disrupted with the intervention of regulators from around the world.

Just as Binance was trying to deal with one regulator, another one would pop up with a notice. The list seemed neverending as Italy’s Companies and Exchange Commission [CONSOB] became the latest addition.

Italy’s financial regulator calls out Binance

In a recent announcement, the Italian regulator CONSOB pointed out that Changpeng Zhao’s exchange wasn’t authorized to operate in the region. The regulator made sure to stress the fact that investors were to invest in “utmost diligence.”

The notice further read,

“Consob warns savers that the companies of the ” Binance Group ” are not authorized to provide investment services and activities in Italy, not even through the website www.binance.com whose sections called ” derivatives ” and ” Stock Token “, relating to instruments related to crypto-assets, were previously also written in Italian.”

In addition to this statement, Italy’s regulator made sure to warn investors in making hasty decisions, particularly with regard to crypto-assets. The regulator noted that investors had to handle crypto with utmost caution as it could lead to a loss of money.

The crypto exchange could be losing out on significant partners across the globe if the regulatory pressure on it persists. The exchange has already lost an array of partners in the UK. Just yesterday, Binance went on to put a hold on withdrawals in GBP for the customers of the UK. These glitches could pose unfavorable for the platform, which could further pave the way to the loss of customers.

Italy’s stock market regulator expresses concerns over inadequate regulations of the crypto-verse

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The chairman of Italy’s Commissione Nazionale per le Società e la Borsa [Consob], Paolo Savona joined the list of several officials who have been calling out the crypto-verse for being an unregulated industry.

The crypto market‘s journey towards $2 trillion was impeccable. The demand and popularity of the industry grew to new heights further falling under the purview of governments across the globe.

Even though the crypto industry started off as an entity free from the shackles of the government or any sort of regulatory body, it went on to be partially regulated. However, several authorities across the globe have been yearning for strict regulations of the crypto market. Italy’s Paolo Savona is the latest to express his distress over the unregulated growth of cryptocurrencies.

Italy’s regulator highlights the need for regulations on crypto

The Consob chairman had reportedly suggested that digital assets that weren’t regulated could aid in illegal activities that included money laundering. In a recent article by Reuters, it was noted that Savona laid these concerns out during an annual report presentation of the Italian agency.

In his presentation he stated,

“Without proper oversight there could be a worsening in market transparency, the basis of legality and rational choice for (market) operators. If we add to this Consob’s recent own experience in closing down in Italy hundreds of websites illegally gathering savings, the picture that emerges is worrying.”

Digital assets could be a medium as well as an armor to criminals, he noted. The Italian regulator suggested that criminal activities like tax evasion, money laundering, terrorism as well as kidnapping could be facilitated by cryptocurrencies.

Furthermore, the Consob chairman pointed out that there were about 4,000 to 5,000 cryptocurrencies in circulation that weren’t under the purview of any regulation. While governments across the globe have been speeding up their process of regulating crypto, the Consob chair suggested that Italy would do better if it came up with its own solution instead of waiting up for Europe. He added,

“If it takes too long at a European level to come up with a solution, (Italy) will have to take its own measures.”

Italian Banks Express Desire to Test Digital Euro

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According to the recent report, Italian banks have expressed their desire to explore the European Central Bank Digital Currency. The Italian Banking Association (ABI), composed of 700 financial institutions, wants to accelerate the general implementation of the CBDC, which is backed by the European Central Bank ( ECB).

In regards, ABI has also handed out ten recommendations for a European digital currency during its Thursday announcement. The initial advice, which is the most important, suggests comprehensive complaisance with the appropriate European regulatory structure. On top of this, ABI also suggested financial sustainability as another crucial area.

Digital currencies are beneficial

The association also highlighted some advantages of a CBDC. It noted:

“A programmable digital currency represents an innovation in the financial field, capable of profoundly revolutionizing money and exchange. This is a transformation capable of bringing significant potential added value, particularly in terms of the efficiency of the operating and management processes”.

The development of a central bank cryptocurrency can aid in positioning Italy at a favorable spot to have proper administration of the country’s digital landscape. The features of the digital Euro can offer additional security to the financial system, on top of eliminating the inconveniences related to critical financial transactions like transferring of funds.

Furthermore, digital currencies can help a country achieve a completely cashless economy. This is particularly cost-effective since the cost of developing fiat currencies will be slashed or wholly abolished.

Italian banks dawn of innovation

The announcement highlighted the fact that digital currencies are programmable positions them as crucial innovations in the finance sector. ABI stated that Italian banks believe that the development of digital currencies will immensely revolutionize money and the financial system altogether.

Italy has joined several other countries that have expressed the desire to deploy a central bank digital currency. Early this year, the Bank of France asked the public to submit proposals for the possible experimentation of a CBDC. Furthermore, South Korea also established a panel early this month to research digital currencies.