Italy’s CONSOB Takes Action Against Surge of Unregulated Platforms
Italy’s financial markets watchdog, Commissione Nazionale per le Società e la Borsa (CONSOB), has issued a stark warning concerning a rise in unregulated investment platforms operating within its jurisdiction. The regulator is urging individuals to exercise vigilance and caution while engaging in financial transactions.
In its latest enforcement action, CONSOB ordered Internet Service Providers (ISPs) to block access to five offshore websites found to be operating illegally within Italy. This move is part of the nation’s wider campaign to combat the growing threat of unauthorized providers.
Among the blocked sites is a clone scam of Nadex, the North American derivatives exchange. This fraudulent platform is designed to deceive investors into believing they are dealing with a legitimate, regulated entity. Once lured into this trap, victims’ personal and financial information is exploited for a variety of illicit purposes, including identity theft and unauthorized financial transactions, often leading to substantial losses from drained bank accounts.
For clarity, Nadex remains the only legal way to trade binary options and spreads in the US. The firm, which provides investors with the opportunity to trade stock indices, forex, commodities, economic events, and Bitcoin, is regulated by the CFTC as a Designated Contract Market and Derivatives Clearing Organization.
As the battle between legal and unregulated trading intensifies, CONSOB has issued a warning to Italian investors advising against using services from the following entities:
- “Prime Markets” (website: https://primemarkets.co.com; page: https://my.primemarkets.co.com);
- “Fintech Market” (website: www.fintechmarket.consulting; related page: https://cfd.fintechmarket.consulting);
- Nadex CFD Limited (website: www.nadexcfd.com; related pages: https://my.nadexcfd.com, https://webtrader.nadexcfd.com);
- Luxem Capital, Inc. (website: https://luxemcapital.com).
Upon review, the websites of these blocked brokers demonstrate a common tactic of targeting inexperienced clients with offers to trade highly leveraged products.
Since acquiring the power to ban unregulated financial intermediaries in July 2019, CONSOB has blocked a staggering 898 offshore sites. The regulator’s ultimate goal is to completely eradicate unlicensed trading from Italy, ensuring a safer ecosystem for local investors.
To achieve this, CONSOB employs a combination of AI-based search algorithms, investigations, and customer reports to identify rogue offshore operators. The ‘Growth Decree’ has further expanded CONSOB’s power, enabling it to order ISPs to block websites within the region. However, due to technical limitations, it may take several days for such a blackout to come into effect.
- We strongly advise against trading with offshore trading providers due to the increased risk of fraud. Always ensure that your chosen provider adheres to the regulatory standards set forth by your country.