Consob resolution no. 20898 of April 18, 2019 - CONSOB AND ITS ACTIVITIES
resolution
Resolution no. 20898
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 performed through the www.gmtcrypto.ch website
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 www.gmtcrypto.ch and https://gmt-crypto.com websites, it emerged that:
i. the www.gmtcrypto.ch website, registered anonymously, is also available in Italian and has no mechanism in place to prevent the registration of Italian users;
ii. potential investors, subject to prior registration and the opening of an account, are offered the opportunity of trading online through different platforms called 'Gmtcrypto MT4', 'GMTcrypto MT5', 'GmtcryptocTrader' and 'GMTcrypto markets', accessing 'incredible investment schemes' involving currencies, cryptocurrencies, commodities, precious metals and 'other markets', with the additional benefit of 'dedicated consulting services';
iii. in order to carry out trading transactions, an investment of money is required, to be paid into the account opened online;
iv. at the bottom of every page of the website www.gmtcrypto.ch reference is made to an entity called 'GMTCRYPTO'; the 'Contact Us' section shows an address in Switzerland, an email address and a telephone number with an Italian dialling code (+39 0438 1736731);
v. the 'Privacy Policy' mentions the company Crypto Consulting LTD, without no indication of a registered address;
HAVING CONSIDERED that the activity at issue - still carried out thorough the aforesaid websites - qualifies as the provision of investment services as referred to in art. 1, para. 5 of the Consolidated Law on Finance, insofar as clients are offered the opportunity of opening a trading account against which purchase and/or sale orders for financial instruments can be issued;
HAVING CONSIDERED that the aforementioned operations, still available on the www.gmtcrypto.ch website, are directed towards Italian investors, insofar as the website is also available in Italian and insofar as there have been reports and confirmation of; cold calling by operators working for the website in question;
HAVING CONSIDERED that the entity in question is not authorised to provide investment services to the Italian public, insofar as Crypto Consultancy LTD is not registered on the dedicated register held 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 qualified subjects referred to in art. 18, para. 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 that the operations in question qualify as the professional provision of investment services involving financial instruments to the Italian public, in infringement of art. 18, para. 1, of the Consolidated Law on Finance;
HAVING REGARD TO the fact that, according to 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) make public, even by way of a precaution, the fact that the party is not authorised to perform the activity indicated in article 1, paragraph 5; b) order the party to cease the infringement';
CONSIDERING it therefore necessary in the light of the foregoing to immediately and urgently adopt this Resolution;
HEREBY RESOLVES:
The order is issued to cease the infringement of art .18 of Legislative Decree no. 58/1998 performed via the www.gmtcrypto.ch website, consisting of the offer and the provision of investment services and activities to the Italian public.
This Resolution shall be brought to the attention of those concerned and published in the CONSOB Bulletin.
This measure may be appealed before the Regional Administrative Court of Lazio within 60 days of the date of notification.
April 18th, 2019
THE CHAIRMAN
Paolo Savona