CONSOB, Italy’s SEC equivalent, has determined CoinSpace’s cryptocurrency offering to be a “financial product”.

Seeing as CoinSpace are not registered to promote financial products in Italy, CONSOB has effectively issued a ban on promotion of the company.

BehindMLM reviewed CoinSpace back in February, 2016. CoinSpace affiliates invest in S-Coin Ponzi points, with ROIs through an internal exchange paid out of subsequently invested funds.

CONSOB’s investigation reached a similar conclusion, finding ROIs of up to 50% per month as well as daily ROIs advertised.

CONSOB’s investigation focused on “coinspace1.com”, which markets CoinSpace in Italian.

The conclusion reached by CONSOB was to suspend promotion of CoinSpace in Italy for 90 days. The problem for CONSOB is they don’t know who is running “CoinSpace1”.

The coinspace1.com site is registered by a person whose identity is concealed by a provider of services privacy.

At present, it is not possible to identify the authors of the advertising done through this site.

CONSOB’s resolution was published on February 1st. At the time of publication the CoinSpace1 website is still promoting CoinSpace.

When I clicked “register” on the CoinSpace1 website, I was redirected to a replicated CoinSpace affiliate website.

When I clicked “create an account”, a signup form identified the referring affiliate as Danilo Presciutti (affiliate ID: 178996).

Possibly due to language-barriers, I was unable to find anything further connecting Presciutti to CoinSpace.

According to TruffaCoin however, CONSOB’s resolution makes all promotion of CoinSpace in Italy illegal.

CoinSpace for their part don’t seem to care about CONSOB’s resolution. Presciutti’s CoinSpace affiliate membership is still active and Italy is the second largest source of traffic to the CoinSpace website (Alexa).

In related news CoinSpace itself might be running out money, following the recent implementation of KYC.

Although designed to combat financial fraud, in the MLM underbelly KYC is typically used by Ponzi schemes to stall affiliate withdrawals.

Oh and it’ll be a nice little money spinner for CoinSpace too, as they’re charging affiliates €119 EUR each for KYC verification.

Affiliates who don’t cough up will purportedly be subject to withdrawal limits.

CoinSpace are directing affiliates to send their KYC documentation to “KYC Safe”. The KYC Safe website was only set up on February 2nd, 2017. It appears to be some dodgy Slovenian company set up to exclusively handle CoinSpace KYC.

I’m sure they’ll take good care of your passport, banking and whatever else personal information CoinSpace affiliates send their way.