Resolution no. 21254

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 websites https://cryptobase.ltd and https://cryptobase.life

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 website, it emerged that:

i. potential investors are offered the opportunity, through the website https://cryptobase.ltd, active and also available in Italian - subject to prior registration, which is also available to Italian users, also via redirection to the website https://cryptobase.life and opening of an account - to trade CFDs relating to currencies, indices and shares;

ii. in order to perform trading transactions, a cash investment must be made, paying sums into an account opened on line; specifically, five types of account are offered, named “Bronzo”, “Argento”, “Oro”, “Platino” and “VIP”, depending on the deposit required and the benefits promised;

iii. as for the traceability of the website in question, in the “Terms and conditions” it says that the contractual counterparty of a user registering on the website is, generic, “Cryptobase”; in the section called “contact us” there is also an address at Petit Lancy (Switzerland) and some email addresses, of which one contains a specific reference to Italy;

WHEREAS the activity carried out through the https://cryptobase.ltd and https://cryptobase.life websites can be classed as the provision of investment services as referred to in art. 1, paragraph 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;

WHEREAS the aforementioned activity, performed through the websites https://cryptobase.ltd and https://cryptobase.life, is still ongoing and is addressed to Italian investors, since the website is also available in Italian, and there have been reports of cold calling members of the public in Italy and in the website a contact email is indicated that contains specific references to Italy;

WHEREAS "Cryptobase", mentioned on this website, is not authorised to provide investment services to the Italian public, since it does not appear 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 authorised entities as referred to under 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 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, letter b) 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 pursuant to this decree:[…] b) order that the infringement cease';

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 art. 18 of Legislative Decree no. 58/98 performed through the websites https://cryptobase.ltd and https://cryptobase.life, 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 5, 2020

THE CHAIRMAN
Paolo Savona