Bitcoin: Consob blocks an ICO for the first time.

Consob has issued its first halt order on an ICO, or initial coin offering. The ICO was launched by Togacoin Ltd, a company incorporated under English law, with the aim of financing the construction of a multi-purpose data center focused primarily on cryptocurrency mining, supplemented by "secondary activities such as hosting, web application development, and the resale of electricity, which will allow for investment diversification."

"The Authority has reasonable grounds to suspect that a public offering of financial products is being promoted in violation of the relevant laws and regulations," reads the Bulletin, which orders the suspension—pursuant to the Consolidated Law on Finance (TUF)—"of the public offering to residents of Italy concerning 'TGA tokens,' carried out by Togacoin Ltd., including via its website." The Commission has set its sights on an offering with sky-high returns: according to the “Revenue Calculator” section of the website, an investment of $100 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 states that the offering “is directed at the Italian public” and “exhibits 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. However, “with regard to the activity carried out by Togacoin Ltd,” the Bulletin states, “no prior notification was made to Consob, nor was the prospectus intended for publication submitted.”