Poland Probes Crypto.com for Possible Unauthorized Activities

Polish financial regulators issued a public alert
regarding the activities of Foris DAX MT, a Malta-based company operating under
the Crypto.com brand. The regulator cautioned investors about possible
unauthorized financial services offered by the firm.

The warning highlighted that the Polish Financial
Supervision Authority (KNF) is monitoring DAX MT’s financial operations within
the country. Crypto.com has reportedly been added to a list of flagged
companies under KNF’s oversight, Cointelegraph reported.

Regulatory Concerns

The KNF reportedly directed its concerns toward Foris
DAX MT, saying that the company may
lack the necessary licenses to provide financial services in Poland. According to a representative from KNF, Polish law
mandates licenses for entities offering brokerage or investment services. The
case has now been referred to the Warsaw Regional Prosecutor’s Office for
further evaluation.

Early this year, the KNF announced plans to start
supervising digital assets by the end of this year following several years of
not officially recognizing cryptocurrencies. According to a report by Finance Magnates, the Polish government disclosed plans to present in the second
quarter.

The new framework reportedly allows the regulator to
issue financial penalties to crypto firms. This encompasses setting clear
legislation for the industry.

Poland Steps Up Crypto Regulation

The company’s official statement stated, “The introduction of new regulations is dictated by the need to prepare a legal
framework for the proper functioning of crypto asset markets, thereby ensuring
effective supervision and investor protection by equipping the Financial
Supervision Authority with the appropriate means.”

Meanwhile, crypto.com sued the SEC for
allegedly overstepping its mandate. The crypto exchange mentioned that the US
regulator extended its mandate outside its statutory limits by interpreting
digital assets as securities.

The case followed a Wells notice issued by the
regulator against the exchange. Crypto.com maintains that the SEC had imposed
an unlawful rule categorizing most crypto transactions as securities while
excluding transactions involving Bitcoin and Ether in the classification.

Besides that, Crypto.com Derivatives North America petitioned the Commodity Futures Trading Commission and the SEC for clarification on the regulation of specific cryptocurrency derivative products. The exchange said that the regulator’s distinction ignores the similarities in these assets.

This article was written by Jared Kirui at www.financemagnates.com.
Credit: Source link