Poland’s Consumer Protection Agency Opens Case Against Cryptocurrency Exchange
The body ensuring that consumer rights are respected in Poland has initiated proceedings against a crypto exchange falsely claiming to be Polish. The trading platform also misled customers that it was operating with the regulatory approval of the financial authorities in the country.
Belize-based Exchange Risks Hefty Fine in Poland for Allegedly Deceiving Crypto Traders
The Polish Office of Competition and Consumer Protection (UOKiK) is pressing charges against Good Solution Investments Ltd., the operator of Kanga Exchange. According to the agency, the coin trading platform claims that its “business model” has been approved by the Polish Financial Supervision Authority (KNF).
“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.
The crypto market in Poland is not specifically regulated as it’s not considered part of the financial market, the office noted. So far, KNF has published only a warning of the risks associated with the acquisition and trading of crypto assets.
UOKiK established that the false information about the Polish regulatory approval was published on two websites, kanga.exchange and kangakantor.pl. Kanga Exchange also promoted itself as a “Polish cryptocurrency exchange” when its operator is registered in the Caribbean nation of Belize. According to its terms, the law applicable to the contracts with users is also the one of Belize.
Just because a person authorized to represent the company is a citizen of Poland does not justify the claims that the product offered is of Polish origin, Chróstny elaborated further. Misleading consumers in that regard may impact their financial decisions. Had they known that Poland’s legislation was not applicable, they could have chosen not to use its services, he pointed out.
If the charges against it are confirmed, Good Solution Investments would face a fine of up to 10% of its turnover for violating collective consumer interests. The company’s name is also on a warning list issued by the KNF and the case is being examined by the District Prosecutor’s Office in Warsaw.
The Office of Competition and Consumer Protection has taken action regarding other cryptocurrency platforms before, including Coincasso OÜ, which it fined, the Lodz-based Selfmaker Technology, and the Dubai-registered Selfmaker Smart Solutions, suspected of running a pyramid-like promotional system.
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