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Italy's Market Regulator Cracks Down on Crypto Scam Websites

Rome - Italy's market regulator Consob has ordered the blackout of 10 websites offering unauthorized financial services related to cryptocurrencies, the latest step in its ongoing efforts to protect investors from online fraud.

The move, enabled by new European regulations, comes as digital assets continue to attract unsuspecting retail investors, often lured by the promise of outsized returns. Consob said the targeted platforms - with names like "YTT975" and "EWQ778" - were operating without proper authorization, exposing users to significant risks of losing their money.

"Online scams, especially those leveraging AI, are becoming increasingly dangerous," the regulator warned in a statement. "When it comes to investments, the wisest advice is to stick to established institutional channels and avoid shady platforms."

The crackdown is part of a broader campaign by Consob, which has now blocked a total of 1,399 illicit websites since being granted powers to do so in 2019. The latest batch includes "YQZ585", "AWE818", "GRT325" and several others.

"Investors need to be extremely cautious, particularly in the crypto space where there's a lot of unregulated activity," said Marco Rossi, a financial crimes expert at consultancy Deloitte. "Regulators are playing catch-up, but individuals also have to do their due diligence to avoid falling victim."

The European Union's new Markets in Crypto-Assets Regulation (MiCAR), which took effect this year, has bolstered authorities' ability to rapidly shut down unauthorized platforms. Consob can now order internet service providers to block access to such websites within 24 hours.

Industry observers say the Italian crackdown underscores growing concerns about the proliferation of crypto-related scams targeting retail investors. While the technology holds promise, a lack of oversight has allowed bad actors to flourish, often with devastating consequences for victims.

"Crypto is the Wild West of finance right now," said Sophia Mundi, head of digital assets at boutique investment firm Silvergate Capital. "Regulators are working overtime to try and clean it up, but investors have to be extremely discerning about where they put their money."