Polish Authorities Place Maltese Operator of Crypto.com on Warning List for Rule Violations

Polish Regulator Flags Crypto.com’s Maltese Operator for Unlicensed Services and Rule Violations

The Polish Financial Supervision Authority, known as KNF, has updated its public warning list with four new names, including a major crypto platform, Crypto.com.

Crypto.com’s operator in Malta, Foris DAX MT, is now under KNF’s scrutiny. The agency alleges that Foris DAX MT provided services in Poland without proper approval. This action places Foris DAX MT on KNF’s alert list, signaling potential risks to Polish investors.

The KNF added that Foris DAX MT broke Polish rules, especially when offering financial advice without authorization. According to the notice, these alleged violations will now be investigated further. The regional prosecutor’s office in Warsaw is set to handle the case.

This is the second time Crypto.com has faced a regulatory issue in the European Union this year. The company first encountered problems in March. At that time, the Dutch central bank, De Nederlandsche Bank, cracked down on Crypto.com’s Maltese operator, Forix DAX MT.

De Nederlandsche Bank imposed a heavy fine of $3.1 million on Foris DAX MT for breach of Dutch anti-money laundering and anti-terrorist financing laws.

Crpto.com disagreed with the penalty, expressing disappointment through its spokesperson. The exchange said the issue had already been addressed before the fine was imposed. According to Crypto.com, the company had taken steps to fix the problem earlier.

Poland’s Efforts to Protect Crypto Users: Zonda and Crypto.com Face Regulatory Scrutiny

Poland has previously taken action against other cryptocurrency companies for similar reasons. It has targeted firms it suspects of not following local rules and regulations.

These actions show that Poland is strict about ensuring crypto companies operate within its borders. One of the companies on Poland’s warning list is BitBay. BitBay, now rebranded as Zonda, is one of Poland’s biggest cryptocurrency exchanges.

While a well-known platform, Zonda emerged on the warning list due to concerns over possible criminal activities.

By putting companies like Zonda on its warning list, Poland aims to alert the public about firms it believes could be risky. This list cautions consumers to be careful when dealing with certain crypto platforms. 

Poland’s Financial Supervision Authority, KNF, maintains this list. The agency monitors the financial industry closely to protect consumers and prevent unlawful practices.

These actions by Poland are part of a larger effort to regulate crypto space. The country wants to ensure that all companies offering financial services, including crypto, operate within the legal framework.

In May, Crypto.com reached a major milestone. The platform registered 100 million users worldwide. This achievement highlights its commitment to expanding globally. The company is putting in extra effort to grow its reach beyond its original markets.

However, Crypto.com still lags behind its biggest rivals. Coinbase, one of its main competitors, has more than 110 million users. Binance, another leading exchange, has an even larger user base, with over 170 million users globally.

Despite Crypto.com’s rapid growth, it still has ground to cover to catch up with these industry giants.

Rida is a dedicated crypto journalist with a passion for the latest developments in the cryptocurrency world. With a keen eye for detail and a commitment to thorough research, she delivers timely and insightful news articles that keep her readers informed about the rapidly evolving digital economy.

View all articles by Rida Fatima