CONSOB orders blackout of 5 unauthorized websites, total reaches 340

The Commissione Nazionale per le Societàe la Borsa (CONSOB), the watchdog responsible for regulating the Italian financial market, today issued a warning against 5 new websites belonging to entities offering online trading services (FX, CFDs, binary options and cryptocurrencies) in Italy without having the proper authorization.

Below are the sites CONSOB has ordered to be blacked out:

1. B.O. Tradefinancials Ltd (www.accessfxtrade.com)

2. Capital Letter GMBH and Capital Letter Ltd (www.brightfinance.co);

3. NewTraders Holdings Ltd (www.toltechfx.com, www.cmcxxmarket.com and www.newtradersholdings.com).

The commission availed itself of the new powers resulting from the "Growth Decree" (Law no. 58 of 28 June 2019, Article no. 36, paragraph 2-terdecies). Under this piece of legislation, Consob can order Internet service providers to block access from Italy to the websites offering financial services without the proper authorization.

This way, the total number of websites blacked out in Italy since July 2019, when CONSOB got the power to oder that the webistes of fraudulent financial intermediaries be blacked out, has risen to 340. Last week, the regulator added five other websites to the list.

Let's note that the blocking of access to online trading websites can have much vaster repercussions than one might expect. It does not only affect the access of a client to a broker's website. It also may affect the partnerships of a broker whose website is blocked. A noteworthy example in this respect is the failed deal between IC Markets and FC Inter Milan. The failed sponsorship deal, in turn, has led to a lawsuit.