Italy’s National Commission for Companies and the Stock Exchange (CONSOB) issued on Monday a warning notice against binary options websites www.coinspace1.com and www.smartbotpro.com.
The watchdog has taken a precautionary measure and imposed certain limitations to Coinspace. It has suspended for a period of 90 days the advertising activity carried out through the website www.coinspace1.com relating to the public offering promoted by Coinspace regarding “cryptocurrency extraction packages”.
In adition, the CONSOB noted that SmartBotPro “cannot be traced to subjects authorized to provide investments services and activities in Italy”.
The two websites offer trading in various binary options. They seem to target Italian investors without having the required authorization.
In Italy, as in any other EU member, financial intermediaries, including forex and binary options brokers, are not allowed to operate without the proper authorization from the local authorities or the relevant regulator of any other EU country. If a broker is licensed in any EU member state, the license allows it to provide services in the rest of the union.
We informed you recently that the CONSOB publically attacked binary options, together with spot forex and contracts for difference (CFDs) for being “highly-speculative, risky and complex forms of financial investment” and not suitable for most investors.
When engaging with unauthorized and non-regulated brokers, traders are putting their investments at higher risk. We strongly advise you to only deal with regulated forex brokers, authorized by reputable regulatory bodies like CySEC, FCA, and CFTC/NFA, among others.