The National Commission for Companies and the Stock Exchange (CONSOB), issued a warning against three cryptocurrency companies operating in the country. These firms provide services related to crypto mining as well as investments. However, none of them hold a license or have been authorized by regulators to promote or execute any of the schemes they are promising.
CONSOB issued ‘Cease and Desist Notice’ to these firms. One of the three firms, Richmond Investing, received the notice on November 20, which states, the company does not hold any valid license for the kind of services it is catering. The firm promises high returns in a short period of time and also claims to provide integrated investment services for several assets.
The second name in the list of three is Crypton Ltd; it promised its investors with passive income return on its own currency Crypton. However, it was banned for 90 days by regulators to offer Crypton to the general public.
The third name in the list is that of Eagle Bit Trade; the firm promises bonus for its ‘Package Holders’ if they recruit a new member. The shareholder then earns its income from the binary system of new members. Well, that sound awfully like a Pyramid Scheme, isn’t it?
The firm says it does not charge a single penny for a new registration. However, many times what they forget to mention is, a new free member cannot earn money unless they buy one of their packages.
CONSOB is an independent statutory body which has been set up to help regulate the security and future markets from fraudulent firms mentioned above. The regulatory watchdogs started collecting info on the said firms after it received many complaints regarding their mode of operations.
CONSOB Aims To Follow European Standards of Regulations for Crypto Firms
Europe has been the flag bearer in bringing the crypto exchanges under a set of regulations. These regulations help to keep a check on the firms who can otherwise come up with tall promises like Eagle Bit, and anyone desperate to earn fast money might fall prey to such scams.
CONSOB is trying to emulate those regulation policies to protect the citizen from potential scams. Not only that, major countries and their governments have realized the potential cryptocurrencies hold, and they have created at least a research and analysis wing to explore further possibilities and implementation. On the other hand countries like UK and Spain have been monitoring the crypto trade market closely. They are going to discuss with the finance committee to check whether these cryptocurrencies are a taxable entity.