Binance has been embroiled in controversy lately. The world’s biggest cryptocurrency exchanges’ tryst with controversies seems to continue. This time, the Italian Companies and Exchange Commission, the top financial regulatory authority in the country, has warned Binance. It said that the crypto exchange giant is not authorized to offer its crypto investment services in Italy.
The financial watchdog also made it clear that the warning issued is for Binance.com, which is Binance’s main website. It is a global exchange and not a local subsidiary. In the warning the regulator also questioned the company’s legal authority to operate in Italy.
Recently, there have been a few countries that have issued warnings to Binance for offering crypto investment products and services. Earlier it was UK and now it comes from Italy.
CONSOB, the country’s top financial regulator said: “In any case, it is important that investors are informed that transactions in instruments related to crypto assets may pose risks that are not immediately perceptible due to their complexity, high volatility as well as for security vulnerabilities.”
The regulator’s remarks have come in the light of a class action lawsuit filed by a group of italian investors against Binance in which they allege that Binance has violated not only Italy’s but also their own rules regarding future trading on the platform.