The Italian financial authority has issued a warning on Binance, a cryptocurrency exchange.
Binance has been warned by the Italian Companies and Exchange Commission that it's not authorised to facilitate crypto investment services in the country.
The Italian Securities and Exchange Commission (CONSOB), Italy's securities market regulator, has published a statement stating that Binance Group and connected companies are not authorised to provide investment services or operate in Italy.
The regulator underlined that the warning only applies to Binance.com, the primary website of the global crypto exchange. CONSOB went on to warn the public about the possible ramifications of Binance's legal status in Italy, suggesting caution while making investment decisions.
Italy has become the latest jurisdiction to issue a public warning about Binance, the largest cryptocurrency exchange by trading volume in the world.
“In any case, investors should be aware that due to their complexity, high volatility, and security weaknesses, transactions in instruments associated to crypto assets may pose risks that are not immediately apparent,” according to CONSOB.
CONSOB declined to further comment on the situation.
The latest warning comes as Binance is facing a class-action lawsuit from a collection of Italian and international investors. Last Monday, the Italian law firm Lexia Avvocati announced a legal case against Binance to recuperate damages from transactions on the platform, claiming that the exchange had violated its own rules on futures trading.
CONSOB's recent warning joins a growing number of regulators in Poland, Germany, the United Kingdom, the Cayman Islands, Thailand, Canada, Japan, Singapore, and the United States that have issued similar concerns against Binance.