Resolution no. 21360

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 https://bitcointrader.software/ 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 supplements;

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

HAVING ESTABLISHED that, from checks on the https://bitcointrader.software/ website, it emerged that:

i. the website, generically referable to "Bitcoin Trader", offers users the possibility to trade on the Forexmarket and trade CFDs"both in automatic and manual mode" through the use of software called "Bitcoin Trader";

ii. the homepage of the website in question states that "once your registration has been accepted you will automatically be registered in Bitcoin Trader. At this point you can request and use the software for free". The same Homepagealso states that "To start earning money with the Bitcoin Trader software you need to deposit a minimum amount of 250 euros" and also "click on auto-trade and enjoy the performance of our award-winning and very accurate algorithm";

iii. after registering, the user is automatically redirected to another website linked to "Bitcoin Trader”, where money can be paid into the account opened online;

iv. as to the traceability of the website in question, there is no reference in it to legal entities and/or addresses;

WHEREAS the activity carried out through the https://bitcointrader.software/ website can be classed as the provision of investment services, as referred to in article 1, paragraph 5, of the Consolidated Law on Finance, insofar as clients are offered the opportunity to entrusta sum of money that is managed in purchase or sale transactions of financial instruments using an algorithmic and automated tradingsystem. Investment decisions relating to the investor's assets are, therefore, defined and implemented without the need for individual orders from the investor;

WHEREAS the aforementioned operations, performed through the https://bitcointrader.software/ website, are still ongoing and are aimed at Italian investors, insofar as the website may be consulted in Italian;

WHEREAS “Bitcoin Trader”, mentioned on this website, is not authorised to provide investment services to the Italian public, insofar as it is not registered on 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 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 article 7-octies, letter b) of the Consolidated Law on Finance - 'Powers to counteract abusive practices' - 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 infringement';

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 through the https://bitcointrader.software/ website, consisting in offering 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.

13 May 2020

THE CHAIRMAN
Paolo Savona