Nexo continues European expansion with Polish licence
Crypto lender Nexo said today that it had been registered as a virtual currency operator with the Ministry of Finance in Poland, which enables its European-based entity to provide services to the country’s residents lawfully.
Nexo described the milestone as a natural move for the enterprise towards the Central and Eastern European market and the vibrant cryptocurrency community it hosts.
The scope of this approval grants Nexo the right to provide brokerage services in Poland related to exchange transactions between crypto and fiat currencies, as well as the administration of customer accounts and custody. It comes hot on the heels of securing registration in Italy with Organismo Agenti e Mediatori (OAM), the regulatory organization in charge of the country’s licensed financial agents and credit brokers.
Nexo joined the ranks of other crypto firms that have recently secured clearance from OAM, as required by newly updated regulations on crypto assets. The list includes Binance, Coinbase, Blockchain.com, BitMEX and Bitstamp.
“Our responsibility to both consumer markets and regulatory authorities is always top of mind, which is why we’re relentless in our pursuit of full compliance with both global and local jurisdictions. We recognize the potential in the Polish digital assets space, and we’re delighted to be able to expand Nexo’s user-oriented solutions in the country. From another viewpoint, this formal relationship with the Ministry of Finance in Poland signals our dedication to the industry and active engagement with regulatory bodies,” said Antoni Trenchev, Co-founder and Managing Partner of Nexo.
Poland has made localized attempts to regulate specific aspects of cryptocurrencies. While some of those instances are more concerning than others, none of it has officially banned the virtual asset class. Instead, the country has taken a stance similar to other countries to regulate the sector and prevent its use in criminal activities.
Nevertheless, Poland’s financial regulator, the Polish Financial Supervision Authority (KNF), has repeatedly warned consumers looking to profit from crypto investments to be ready to lose everything. The KNF’s concerns include price Volatility, the complexity of products offered and the lack of consumer protection regulation around many of crypto assets.
According to the KNF’s website, trading in crypto-assets and trading venues themselves are not prohibited by law, and therefore, its transactions are ‘legal in the territory of the Republic of Poland.’