Bitcoin: Consob blocks an ICO for the first time.

Consob has issued its first ban on an ICO (initial currency offering). The ICO was launched by the English-based company, Togacoin Ltd., with the aim of financing the construction of a multi-activity data center, primarily focused on cryptocurrency mining, alongside "secondary activities such as hosting, web application development, and electricity resale, which will allow for investment diversification."

The Authority has well-founded suspicions regarding the promotion of an offer to the public of financial products in violation of the relevant legislative and regulatory provisions", reads the Bulletin, which resolves the suspension, pursuant to the Consolidated Law on Finance, "of the offer to the public resident in Italy concerning 'Tga token', carried out by TogacoinLtd also through the website internet " . The Commission's focus is on an offering with sky-high returns: according to the "Revenue Calculator" section of the website, a $100 investment can reach $213 in the first year, $434 in the second, and rise to $654 in the third year. Furthermore, given that the company's website and the ICO whitepaper are in Italian, Consob writes that the offering "is aimed at the Italian public" and "has the characteristics of a public offering of financial products." However, according to the Consolidated Law on Finance, this requires the publication of a prospectus, subject to prior notification and approval by the Authority. But "in relation to the activity carried out by Togacoin Ltd," the Bulletin states, "it does not appear that prior notification was made to Consob, nor does it appear that the prospectus intended for publication was sent.