Italian Regulator Publishes Notice On Binary Options

Italy’s financial markets regulator, the Commissione Nazionale per le Società a la Borsa, has issued a notice in which it warns investors regarding the dangers associated with trading in binary options, CFDs, and rolling spot forex.

Italy’s financial watchdog described such instruments as highly-speculative, risky and complex forms of financial investment, not suitable for most investors.
According to the regulator, above mentioned financial instruments are usually offered via particularly aggressive commercial practices and misleading advertising messages. The regulator also noted that investors accept them without a real understanding and assessing all the risks connected with the investment in question.

The regulator highly recommends that investors ascertain always that the offering subject is authorized to operate in Italy. This can be checked by consulting the specific lists maintained by CONSOB and by the Bank of Italy.

CONSOB has already made progress in reducing traders’ losses. It has limited direct powers of supervision and intervention considering intermediaries.

Italy joins other EU countries

Italy has become the latest regulator to attack trading in risky financial instruments, joining Belgium, France, Germany, and Netherlands.

In August 2016, Belgium banned the distribution through online channels of over-the-counter binary options, spot forex, and CFDs with leverage.
Considering France, the country has restricted online advertising of highly speculative and risky financial contracts, including binary options, forex and CFDs with leverage greater than 1:5.

The Netherlands and Germany have also unveiled they consider the ban of advertising such products.

Warning notice against Coinspace and SmartBotPro

On Monday, CONSOB issued a warning notice against binary options websites and

The watchdog has suspended for a period of 90 days the advertising activity through regarding “cryptocurrency extraction packages.”
Additionally, the CONSOB emphasized that SmartBotPro cannot be traced to subjects authorized to provide investments services and activities in Italy.

The two websites seem to target Italian clients without holding the required authorization.

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