The amazing country of Italy, full of lush green nature and amazingly tasty food has a dark side that you wouldn’t expect. Below all of the vineyards and olive gardens lies thousands of mining hardware, designated to generate as much cryptocurrency as possible. Although there have been concerns with the mining business model, to begin with, it mostly affected large companies like Binance, the relatively smaller ones aren’t even bothered.
What’s important to know about these Italian mining operators is that they are unlicensed. Therefore this brought them some unwanted attention with the local financial watchdog Commissione Nazionale per le società e la Borsa also known as CONSOB. For now it is just a warning to encourage the operators to apply for licenses, however, the regulator is deep in information gathering processes to screen and track these companies. CONSOB is also paying close attention to the dealing in the FX market. Recently it also added Richmond Investing in its blacklist of brokers, and everybody knows once you’re on the list you’ll never get off.
Why are the mining operators in trouble?
First of all, no financial company or institution can expect a smooth working experience in a country if it is not verified and licensed in it. Therefore it is no surprise that CONSOB finally decided to crack down on these “illegal operators”. The companies in question are Richmond Investing, Crypton Ltd‘s Alessandro Brizzi and Eagle Bit Trade. All of these operators are accused of offering services they’re not authorized to.
According to reports from CONSOB itself, all of the companies are involved in false advertisement and financial scams. More specifically, they single out Richmond Investing that claims to offer its clients full investment services with multi-assets, while also promising high returns. Obviously this is a marketing strategy for the beginners of the industry, but nonetheless, it’s misleading.
Part of a common policy
The recent crackdowns on illegal cryptocurrency firms are not unexpected. The trend, if you want to call it that, has been happening all over Europe, with Germany in the driver’s seat. It seems like a collective incentive from the European countries to make the market a lot more regulated. This doesn’t mean that they are trying to inhibit the companies’ abilities to turn a profit, no the opposite, they’re trying to regulate their profits to suit the local law, while also not damaging the citizens’ financial situations.
To defend the firms’ actions it is safe to say that CONSOB pretty much asked for it. The watchdog allowed the firms to operate on virtual currencies, with just an advice to wait for a formal regulatory framework, which could take months if not years. Basically what the CONSOB did was when the teacher gives out homework and says that some parts are optional. Of course, nobody is going to do it.
Nevertheless, CONSOB has seen the effect that trading scams have on the population and the financial situations within the country. At this moment, before the official regulatory framework is completed, it can only issue warnings about specific companies. The warnings include advises to the population to always check the registration code of the company with the regulator, which is not a hard thing to do, but more and more Italians fall victim to scams.