Poland sues Kanga Exchange over false regulation claims

abdelaziz Fathi

A polish regulator has filed charges against the operator of cryptocurrency platform Kanga Exchange over false claims that it’s regulated by a dozen of EU countries.

The Polish Office of Competition and Consumer Protection said that contrary to claims on its website, Good Solution Investments Ltd. was not a polish entity, not known to the KNF or authorized to provide any type of financial service, including the provision of investment services. The company also lists the logo of the Polish Financial Supervision Authority, among many other authorities that Kanga alleges to work under their approvals.

“Kanga Exchange has never received the approval it refers to. Moreover, its activities are not subject to supervision or evaluation by the KNF. Providing such information could mislead consumers as to the legality and safety of the performed operations,” the head of UOKiK, Tomasz Chróstny, explained in an announcement.

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.’

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 crypto assets.

Additionally, the authority noted the lack of proper regulations in place and that crypto is difficult to understand and convert back to cash. Thus, crypto assets are somewhat murky investments and are difficult to be kept safe, unlike ‎strictly regulated traditional financial markets.

The Warsaw watchdog added it was aware of investment cold-calls, which featured the regulator’s name being involved in monitoring the progress of proposed crypto-asset transactions.

Read this next

Inside View

Broadridge report finds 27% of firms’ overall IT budget goes to digital transformation

“A new chapter in digital transformation is emerging. In our work with clients across the financial services industry we see leading firms are already reaping the benefits from digitalization and the use of technologies such as AI and blockchain/DLT, as they adapt to economic headwinds and new competitive dynamics”

Executive Moves

Ripple announces Monica Long as President

“I’m incredibly honored to take on the role of President at Ripple as we expand deeper into crypto-enabled services like liquidity, settlement and custody.”

Executive Moves

Arabesque AI appoints Carolina Minio Paluello as CEO

“Arabesque AI is uniquely positioned to service the asset management industry’s need to meet the growing market demand for hyper customised portfolios.”

Industry News

SEC Commissioner Mark T. Uyeda says standardized ESG measures are doomed to fail

“Because ESG ratings may be divorced from matters of financial materiality, they can reflect a particular political or social agenda.”

Industry News

Worldline launches digital payments suite in India

“Our low-cost innovative offering SoftPOS will empower SMBs in a big way to accept digital payments affordably.”

Technology

cTrader Web 4.5 Presents Guest Mode, Multiple Charting and Copy Improvements

Spotware has announced the release of its cTrader Web version 4.5, which comes with a whole range of features and improvements for all cTrader users.

Technology

SteelEye suggests integrated surveillance as Morgan Stanley fines employees over WhatsApp

“The use of integrated surveillance means firms can avoid unwanted regulatory attention by enabling them to self-report and self-remedy more efficiently when malpractice is flagged.”

Industry News

ASIC bans Gregory William Finerty for unlicensed FX algo trading bot

Bradford AI leased an algorithmic trading program known as ‘Robot 1’ to trade on the FX market, using an Australia-based over the counter contracts for difference (CFD) broker.

Opinion

With the recent changes to St Vincent licensing, what will the future trends be for licensing in 2023?

New St. Vincent and the Grenadines regulations came as somewhat of a shock for those brokerages that are only regulated in SVG

<