Resolution no. 22850

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 committed via the https://btcsystem.net 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, as subsequently amended and supplemented;

HAVING REGARD to Legislative Decree no. 58 of 24 February 1998 (“Consolidated Law on Finance”), as subsequently amended and supplemented;

HAVING ESTABLISHED that checks on the web have shown that:

1. via the https://btcsystem.net website, which is active and can be consulted in the Italian language, the potential investor is offered the possibility of trading derivatives such as Contracts for Difference (CFDs) on currencies and cryptocurrencies using the software called “Bitcoin System”;
2. The home page of the website in question states that "the Bitcoin System software offers 75 BTC CFDs for both fiat and crypto exposure", that "to reap the maximum benefits of the Bitcoin System software, a capital commitment of USD 250 is required" and that "with the simple click of a mouse, trading takes place and you start trading with potential profits that could triple your current income".
3. with regard to the traceability of the https://btcsystem.net website, the "Terms and Conditions" and the "Privacy Policy" on said website make general reference to "Bitcoin System Pty Ltd" without specifying the address of the registered office or any other telephone or e-mail address.

CONSIDERING that the activity carried out via the https://btcsystem.net website is to be considered as the provision of investment services, pursuant to Article 1, paragraph 5, of the Consolidated Law on Finance, since customers are offered the possibility of buying or selling financial instruments using an algorithmic and automated trading system;

CONSIDERING that the above-mentioned activities, which are carried out via the https://btcsystem.net website, are still ongoing and addressed to Italian investors, as the website is available in Italian and it has been established, on the basis of all the information available, that there are inappropriate references to facts, circumstances and institutional persons relating to Italy, with the aim of soliciting Italian savers to invest;

CONSIDERING that Bitcoin System Pty Ltd, which is mentioned on the https://btcsystem.net website, is not authorised to provide investment services to Italian investors, as it is not entered in the register maintained by Consob pursuant to Article 20 of the Consolidated Law on Finance;

HAVING REGARD to the fact that the provision of investment services and activities is reserved to licensed parties as referred to under Article 18, paragraph 1, of the Consolidated Law on Finance, pursuant to which, “The professional provision of investment services and activities to the public is reserved to Italian investment firms, EU investment firms, Italian banks, EU banks and non-EU firms”;

HAVING FOUND that the activities in question constitute the professional provision of investment services to the Italian public, in breach of Article 18, paragraph 1, of the Consolidated Law on Finance;

HAVING REGARD to the fact that, according to the provisions of Article 7-octies, letter b) of the Consolidated Law on Finance - “Powers to counteract unauthorised provision of investment services” - Consob “may, with regard to anyone who offers or carries out investment services or activities over the Internet without being qualified to do so pursuant to this decree: […] b) order the cessation of the breach”;

CONSIDERING it therefore necessary, in the light of the foregoing, to adopt this Resolution immediately for reasons of urgency;

RESOLVES

To order the cessation of the infringement of Article 18 of Legislative Decree no. 58/98 carried out via the https://btcsystem.net website, consisting in offering investment services and activities to the Italian public.

This Resolution shall be disclosed to the public through publication in the Consob Bulletin.

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

18 October 2023

THE CHAIRMAN
Paolo Savona