Italian And French Regulators Hunting Down Even More Crypto Scams

The top financial regulators of France have recently published a new list. This list consists of investment websites that do not have the proper authorizations to operate within the country itself. This includes various so-called digital asset service providers or DASPs.

The Typical Red Flags

BitcoinFrance was one of the more notable firms that came under the french AMF’s radar, having raised numerous red flags suggesting that it could be an investment scam. In particular, BitcoinFrance claims that its proprietary Bitcoin trading software can be accessed freely by users, but only if they deposit a minimum of $250 into it.

According to the app itself, it trades in various cryptocurrency markets, doing so on their clients’ behalf. It’s claimed that this app will generate earnings of $1,000 per day, claiming that these profits will be added without the need for risk. The AMF warned that these are bread-and-butter hallmarks of a typical financial investment fraud.

Trying To Regulate Crypto In France

The AMF made it clear that a complete list of unauthorized websites are available on its own website. The regulator did make sure to stipulate, however, that these domains may change exceptionally quickly, and that this list isn’t meant to be an exhaustive one.

These warnings come just as Paris is aiming to start policing crypto activities. Alongside these warnings, the AMF has recently approved the first application for an Initial Coin Offering (ICO) within the country. New rules have also been published regarding the licensing of DASPs, with further guidelines presented to firms applying for the license, which should be noted as non-mandatory, at least for now. Furthermore, guidelines were issued out regarding how to inform the regulator about internal cybersecurity practices, as well.

Italy Fighting Fraud Relentlessly

Just across France’s borders, Italy’s securities regulator, CONSOB, has blacklisted another array of crypto and FX-focused brands. This comes as more and more unauthorized parties within the finance space try to push into Italy’s online trading business as offshore brokers. This includes the cryptocurrency sector, which is still a bit of a legal grey area for Italy.

CONSOB stands as one of the most proactive and vigilant regulators within the European sphere, using its new legislative powers to mandate the internet service providers (ISPs) of its country to blacklist sites that the regulator deemed to be fraudulent. The process seems to be working, even if it’s essentially trying to drain a lake with a bucket.