The role played by financial regulators is a very crucial one, in the sense that without these agencies, the future of cryptocurrencies and blockchain in general would be questioned. They have really done their best towards giving the new technology a brighter future, it’s now left for us to do rest by hearkening to their advice.
Italy’s financial watchdog agency, the National Commission for Companies and the Stock Exchange (CONSOB), has taken out time out of its busy day to notify the public of the existence of three cryptocurrency firm’s whose loyalty to the public and trustworthiness could be questioned.
According to the watchdog agency, these companies claimed that they would be rendering services like cryptocurrency mining and investment to the public but yet haven’t been licensed or authorized to do so. This should sound as a warning to all the investors out there.
First, a foreign currency broker, Richmond Investing, on the 20th of Nov received a cease and desist order from the Italian Financial regulators, reason being that the firm started rendering investment services which promises investors that they will get high interests in return. They did all that without passing through the normal processes of obtaining a license from the agency.
Second, a company which boasts that they offer the highest form of reward using its well sophisticated proof-of-stake mining method was suspended from offering its local digital form of money called “crypton” coin. The agency even went as far as stopping it’s promoters from advertising the crypton token on Fb. Crypton Ltd. is still unlicensed till date.
Lastly, another cryptocurrency firm, Eagle Bit Trade, came up with the idea that the would be offering some kind of attractive bonus to clients who bought the different species of packages set up by them. The packages are meant to be bought using Bitcoins only and they would use the bitcoin to trade other cryptocurrencies for the specified period given by the client, afterwhich he or she will be given the agreed amount of money stated for the period of time set by the client.
All these companies listed above have been carrying out their activities without proper recommendation from the nation’s watchdog, Consob. But the risks these companies poses has been reduced drastically by the agency, it’s now left to the public to heed to their advice.