The Italian National Commission for Companies and the Stock Exchange (Consob) reported Paxful after it was also reported in British Columbia (BC), Canada.
The reporting took place with the publication of today’s bulletin, September 14th, 2020, but refers to a previous report by the BCSC, the Canadian British Columbia Securities Commission.
The original report was published on April 23rd, 2020 and makes explicit reference to paxful.com.
The text of the report states that, although Paxful is based in the United States, it offers an online cryptocurrency trading platform that can also be used by residents of British Columbia (BC).
The BCSC clarifies that in order to trade in BC, a crypto exchange platform must be recognized as an exchange under Section 25 of the Securities Act, or registered as a dealer under Section 34 of the Securities Act.
Paxful is not recognized as an exchange in BC, or registered as a dealer. For this reason, the report was filed.
This was therefore a formal act due to the lack of the appropriate authorizations, but the BCSC also adds that attention should be paid to cryptocurrency trading platforms operating in the territory of the BC without being recognized or registered by the same agency.
At the moment on the paxful.com website, there are still some offers for buying and selling bitcoin in CAD, i.e. Canadian dollars, so this report does not seem to have stopped the company’s service offer in British Columbia.
It is therefore extremely unlikely that they will be closed in Italy as well.
In addition, CAD trading volumes on Paxful only fell significantly in the week after April 23th, 2020 and then recovered the following week.
To tell the truth, the Italian Consob probably makes these reports automatically, as also happened for example to Binance Futures, so much so that they often take place several months after the original report.
In fact, in today’s report there is nothing more than the name of Paxful, and the address of its website, included in the list of activities previously reported by the BCSC. Consob’s reporting therefore has no immediate effect, except that in the future, in theory, further action could be taken. It is worth noting, however, that to date, no action has been taken by the Italian Consob with regard to similar activities.