Binance‘s regulatory woes don’t seem to be near the end as one more nation has joined the growing list of regulators that have issued some form of warning against the world's largest crypto exchange over the past month.
CONSOB, Italy's regulatory watchdog has become the seventh regulator to issue a warning against Binance. The regulatory watchdog said Binance Group of companies are not authorized to offer any investment services in the country. The official warning read,
“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 advised traders to do due diligence before investing via any such online exchange platform to ensure it falls under the jurisdiction of the law. The warning by CONSOM was quite similar to UK watchdog FCA's warning.
Will Binance Lose Its Global Dominance？
Binance is the leading crypto exchange in terms of traded volume, website visits, and the number of customers. It offers crypto services to millions of customers from across the globe. However, the string of regulatory warnings from seven different countries surely threatens to slow down its rapid expansion.
Japan‘s FSA was the first to issue compliance warning against the world’s leading exchange that was followed by the Cayman Islands, Canada, UK, Singapore, and Thailand. UK's FCA warned investors and companies to stay away from Binance because it is unauthorized to operate in the country. Thai SEC initiated a criminal contempt case against the exchange for operating without a license.
The regulatory clampdown for Binance comes at a very critical time, as crypto popularity has increased the call for regulations has also intensified. Thus, compliant crypto exchanges who started slowly have come to the party. Binance competitor Coinbase has entered two new foreign markets in Japan and Germany with regulatory clearance, while FTX has become the third-largest spot exchange.
