Resolution no. 20806

Order, pursuant to article 7-octies, paragraph 1, letter b) of Legislative Decree no. 58/1998 ('Consolidated Law on Finance') to cease the infringement of article 18 of the Consolidated Law on Finance put in place through the websites https://procapitalfx.com, https://it.probtctrade.com, https://it.btcglobefx.com, https://firstfxclub.com, https://it.protradefx.com, https://it.smartbtcfx.com, https://capitalfxclub.com, https://it.capitalbtcfx.com, https://cryptoclubfx.com, https://gamebtcfx.com, https://it.360smartfx.com and www.smartprofx.com

LA COMMISSIONE NAZIONALE PER LE SOCIETÀ E LA BORSA
[THE NATIONAL COMMISSION FOR COMPANIES AND THE STOCK EXCHANGE]

HAVING REGARD TO Law no. 216 of 7 June 1974 and subsequent amendments and additions;

HAVING REGARD TO Legislative Decree no. 58 of 24 February 1998 ('Consolidated Law on Finance') and subsequent amendments and additions;

HAVING ESTABLISHED that, from checks on the websites https://procapitalfx.com, https://it.probtctrade.com, https://it.btcglobefx.com, https://firstfxclub.com, https://it.protradefx.com, https://it.smartbtcfx.com, https://capitalfxclub.com, https://it.capitalbtcfx.com, https://cryptoclubfx.com, https://gamebtcfx.com, https://it.360smartfx.com and www.smartprofx.com it emerged that:

i. the aforementioned sites, registered by users in anonymous form, are also written in Italian;

ii. after registering on the site and opening an account through a registration procedures also available to Italian users, potential investors are offered the opportunity to use an online trading platform;

iii. in order to trade a cash investment is required, to be paid into an account opened online; in particular, three types of account are available, with various names, according to the minimum deposit required and the benefits promised.

iv. the corresponding footnotes on the homepages of the aforementioned websites, and the “Terms and Conditions”, indicate that the subject to which these sites are attributable is Game Capital Ads Limited, with stated address in St. Vincent and the Grenadines. In relation to the https://it.protradefx.com website, in addition to mentioning Game Capital Ads Limited in a footnote on the home page, the "Terms and Conditions" also indicate the Everest Tech Ltd company, with stated address in the United Kingdom. With reference to the website https://capitalfxclub.com, a footnote on its homepage also mentions a subject called "Pro Capital", with stated address in the United Kingdom; the "Terms and Conditions" section also refers to Game Capital Ads Limited.

WHEREAS the activity carried out through the aforementioned websites can be classed as the provision of investment services pursuant to art. 1, paragraph 5 of the Consolidated Law on Finance, insofar as clients are offered the opportunity of opening a trading account against which they can impart purchase and/or sale orders for financial instruments;

WHEREAS the activity described above, carried out through the aforementioned websites, is aimed at the public of Italian investors, since the site is also available in Italian and, in addition, the operators of the Game Capital Ads Limited adopt forms of contact and interaction, which may also be immediate, with their Italian clients through this site, where they provide guidance on the procedural and operational procedures to be followed in order to invest in financial instruments;

WHEREAS none of the subjects mentioned above is authorised to provide investment services to the Italian public, since none appear on the dedicated register kept by Consob pursuant to art. 20 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that the provision of investment services and activities is reserved for the authorised entities referred to in art. 18, paragraph 1 of the Consolidated Law on Finance, pursuant to which, 'The professional provision of investment services and activities for the public is reserved for investment firms, (and) banks ...';

HAVING ESTABLISHED, therefore, that the operations in question qualify as the professional provision of investment services regarding financial instruments to the Italian public, in infringement of art. 18, paragraph 1 of the Consolidated Law on Finance;

HAVING REGARD TO the fact that, according to the provisions of art. 7-octies, of the Consolidated Law on Finance - 'Powers to counteract abuse' - CONSOB 'may, with regard to anyone who offers or carries out investment services or activities through the Internet without being qualified therefore pursuant to this decree: a) a) make public, even by way of a precaution, the circumstance that the party is not authorised to carry out the activity indicated by article 1, paragraph 5; b) order that the infringement cease;

RESOLVES:

To order the cessation of the infringement of art. 18 of Legislative Decree no. 58/98 performed through the websites https://procapitalfx.com, https://it.probtctrade.com, https://it.btcglobefx.com, https://firstfxclub.com, https://it.protradefx.com, https://it.smartbtcfx.com, https://capitalfxclub.com, https://it.capitalbtcfx.com, https://cryptoclubfx.com; https://gamebtcfx.com, https://it.360smartfx.com and www.smartprofx.com , consisting in the provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of those whom it concerns and will be published in the Consob Bulletin.

This measure may be appealed before the Regional Administrative Court of Lazio within 60 days of the date of service.

February 6, 2019

THE DEPUTY CHAIRMAN
Anna Genovese