The Italian market regulator, CONSOB, has mandated that Internet service providers take action against ten illegal investment and trading websites. These websites were offering Italian consumers many types of unregulated or illicit investment products.
What Was Announced Today?
Today, CONSOB ordered all Internet service providers in Italy to block access to 10 different websites that were illegally providing investment and trading services, including forex trading and trading of digital assets (cryptocurrencies). Some of the website names included FXInvest, ICCTRADES, FortivestTrade, Vorenixio, and Eurotradecfd. The majority of these websites and services were aimed at retail investors and do not have the proper licenses to operate in Italy, nor do they provide a safe environment for traders. Additionally, today, CONSOB instructed Apple to remove the Eurotradecfd mobile application from the Italian Apple Store.
Why Are These Actions Important?
• Continually strengthens CONSOB’s ongoing efforts to eliminate unauthorized forex and CFD trading sites in Italy.
• Signals that CONSOB is increasing its efforts to protect Italian retail traders from scams at the hands of unregulated and unlicensed forex brokers who may exploit international reputations.
• Will make it more difficult for Italian traders to access non-regulated and or offshore services, pushing them into compliance with licensed brokers.
WikiLix® Insight
This is not the first time a regulatory agency has taken enforcement action against a forex broker. In fact, as indicated in this case, there is an increasing trend among regulatory authorities within national jurisdictions to halt their citizens' access to unlicensed and potentially fraudulent brokers. This is particularly true for brokers that promote their services through aggressive marketing, especially those that use references to digital currencies (i.e., cryptocurrencies). If you plan to trade forex with a broker, be sure to double-check that the broker is authorized by a reputable regulatory agency such as CONSOB, FCA, or CySEC.
