Binance’s regulatory difficulties appear to be far from done, with yet another country joining the increasing list of regulators who have issued some warning against the world’s largest crypto exchange in the last month.
Italy’s regulatory authority, CONSOB, has become the sixth regulator to issue a warning to Binance. According to the regulatory authority, the Binance Group of companies are not authorized to offer any investment services in the country. According to the official warning,
The Consob warns investors that the company’s” Binance Group” is not authorized to provide investment services and activities in Italy, even though the site www.binance.com whose sections called” derivatives” and” Stock Token” regarding instruments related to crypto-assets, were previously also written in Italian.
CONSOB also recommended traders conduct a due investigation before investing through any such online exchange platform to ensure it is legal. CONSOM’s warning was very similar to the FCA’s warning in the United Kingdom.
Will Binance’s Global Dominance Fade?
Binance is the most popular cryptocurrency exchange in traded volume, website traffic, and customer numbers. Millions of clients from all around the world use its crypto services. However, a slew of regulatory warnings from seven different nations threatens to stifle the company’s rapid growth.
The Cayman Islands, Canada, the United Kingdom, Singapore, and Thailand were among the first to issue a compliance notice against the world’s largest exchange. The Financial Conduct Authority of the United Kingdom (FCA) has advised investors and businesses to avoid Binance since it is not permitted to operate in the country. In addition, the Thai Securities and Exchange Commission (SEC) has filed a criminal contempt prosecution against the exchange for operating without a license.
The regulatory crackdown on Binance comes at a vital juncture, as the need for rules has grown in tandem with the rise in crypto popularity. As a result, compliant crypto exchanges have joined the party after a delayed start. Coinbase, a competitor of Binance, has received regulatory approval to enter two more foreign markets, Japan and Germany, while FTX has surpassed Binance as the third-largest spot exchange.