Polish watchdog KNF adds AvaTrade to caution list

abdelaziz Fathi

Poland’s financial regulatory body, the Polish Financial Supervision Authority (KNF), today issued a public warning against Dublin-based forex broker AvaTrade, stating that the firm is not authorized to provide investment services in the country.

Headquartered in Ireland, AvaTrade Group is a provider of a full spectrum of trading instruments, including forex, stocks, commodities, cryptocurrencies and indices. The company is licensed by six independent regulators, including the UK’s FCA, BVI Financial Services Commission, Central Bank of Ireland, Japanese Financial Services Authority, Australian Securities and Investments Commission and South Africa Financial Services Board.

As such, we understand that AvaTrade’s cross border license for the provision of its services to Poland is still valid and the company already maintains its business activities in Poland.

Investment services and activities in Poland may only be provided by companies licensed by the Polish Financial Supervision Authority, or those licensed in other EU Member States under the MiFID II passporting rights.

On the regulatory front, Poland was a notable outlier from ESMA’s restrictions on risky trading products when it introduced an additional level between retail and professional status – ‘experienced,’ which applies only to clients who can prove their financial markets trading experience.

At the time, the financial regulator said that both a retail and experienced client are two quite extreme types of clients, adding that ESMA’s efforts to protect traders have done anything other than pushing business offshore.

Back in 2020, AvaTrade settled allegations by the Alberta Securities Commission (ASC) that it was operating as an unregistered entity in violation of a Canadian province’s securities laws. The settlement resolved the regulator’s concerns that AvaTrade’s BV-regulated subsidiary violated Alberta securities law by issuing and distributing these products without a prospectus.

Earlier this year, some news reports floated the idea that AvaTrade is aiming to join the rush of high-profile listings in London. At the time, sources suggested the listing at London stock market might value the Irish online trading platform between £500 and £700 million.

At the upper end of its IPO range, AvaTrade, which was founded in 2006 by Emanuel Kronitz and Negev Nosatzki, would be worth six times more than the price proposed by Playtech in 2015. The gambling software company offered to pay $105 million, but the deal failed after Ireland’s central bank opposed the acquisition.

Read this next

Retail FX

Overcharts partners with dxFeed for CME Group Market Depth

“More and more traders are using Market Depth while conducting volume analysis. Its primary function is to help traders identify potential support and resistance levels.”

Digital Assets

CoinGecko expands collaboration with CER.live security rating

CoinGecko, one of the earliest crypto data aggregators, has integrated the security score data from the CER.live rating. The trust assessments given to crypto projects will be integrated into their pages on CoinGecko website to draw users’ attention to the importance of security.

Metaverse Gaming NFT

Klaytn taps Parity Technologies to build infrastructure for Klaytn-Substrate

Klaytn has initiated a collaboration with blockchain infrastructure company Parity Technologies to strengthen its tech stack and meet the demands of enterprises looking to harness the crypto technology.

Retail FX

US Retail FX brokers suffer steep fall in client deposits, Trading.com racked up $46K

Retail FX deposits at US brokerages, which have been struggling to eke out a profit in a strict regulatory environment, dropped in March 2022 by $35 million, CFTC data showed.

Retail FX

eToro supports Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI)

Israeli social trading network eToro has added support for trading three new tokens. Immutable X (IMX), Livepeer (LPT) and Cartesi (CTSI) are the next coins to join eToro’s list of featured digital assets.

Executive Moves

LiquidityBook hires Fintech veteran Jonathan Cross to lead EMEA business

LiquidityBook, a provider of FIX and OMS trading solutions for both the buy and sell-side, has added Jonathan Cross to its business team for the EMEA region.

Retail FX

Interactive Brokers’ traders now have direct access to TradingView

Professional charting and trading platform, TradingView has integrated the US-listed brokerage firm Interactive Brokers as the latest online trading partner.

Digital Assets

This Web3 infrastructure provider is on the verge of a radical upgrade

The crypto industry fueled the anticipation of the arrival of web3 with the introduction of Decentralized Finance, Metaverse, and more. And today, that web3 is finding support from various developers looking to build and develop the space to extract the most benefits out of it.

Digital Assets

Crypto bots: trading assistant 

The cryptocurrency market is a volatile one, with huge gains and dramatic dips. However, the most informed traders can use automated tools to maximize profits while minimizing risks. 

<