Resolution n. 23224

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 www.krakcoin.co 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, from the checks carried out, it emerged that:

i. potential investors are offered the possibility to trade on the Forex market through the website www.krakcoin.co, which is active, partially available in Italian and registered anonymously, as well as on "Contracts for difference (CFDs), Stock indices, Synthetic indices, Commodities, Crypto";

ii. in the website, whose registration area is available in Italian, three types of account are proposed, known as "Basic", "Silver" and "Gold", depending on the minimum deposit required and the benefits promised;

iii. with regard to the legal entity to which the website refers, it should be noted that there are generic references to "Krakcoin Trading" with registered office at Imperium Tower (Headquarters) 590W+P2X, Palaion Patron Germanou, Aglantzia 2102, Cyprus" with an indication, in the "Contact Us" section, of the email addresssupport@krakcoin.biz;

WHEREAS the activity carried out through the www.krakcoin.co website may be considered as the provision of investment services pursuant to article 1, paragraph 5, of the Consolidated Law on Finance, given that the aforesaid domain offers users the opportunity of opening a trading account against which orders to buy and/or sell financial instruments may be issued;

WHEREAS the above activity, carried out through the website www.krakcoin.co is still ongoing and is aimed at Italian investors, given that the website is partially available in Italian, there have been reports of interaction with Italian customers, including through remote communication techniques (so-called cold calling), and complaints have been received from Italian investors who have complained about the impossibility of obtaining a refund of the sums used to operate through the website www.krakcoin.co. In addition, it emerged that an online advertising activity was carried out with an active search for customers through improper use of the image and name of well-known personalities in the Italian market;

WHEREAS such activity carried out through the www.krakcoin.co website cannot be attributed to any entity that is authorised to provide investment services to the Italian public;

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 commercial 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 ESTABLISHED, therefore, that the operations in question qualify as the professional provision of investment services to the Italian public, in infringement 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 through the Internet without being qualified pursuant to this decree: […] b) order that such 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 article 18 of Legislative Decree no. 58/98 carried out through the www.krakcoin.co website, consisting in the offering and provision of investment services and activities to the Italian public.

This Resolution shall be brought to the attention of the concerned parties 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 service.

25 July 2024

THE CHAIRMAN
Paolo Savona