The body that ensures that consumer rights are respected in Poland has launched proceedings against a cryptocurrency exchange that falsely claims to be Polish. The trading platform also misled clients that it was operating with regulatory approval from the country’s financial authorities.
Belize-based exchange risks heavy fine in Poland for allegedly misleading cryptocurrency traders
The Polish Office for Competition and Consumer Protection (UOKiK) is filing charges against Good Solution Investments Ltd., the operator of the Kanga Exchange. According to the agency, the coin trading platform claims that its “business model” has been approved by the Polish Financial Supervisory Authority (KNF).
“Kanga Exchange has never received the approval you refer to. In addition, their 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 operations carried out,” UOKiK director Tomasz Chróstny explained in a statement.
The crypto market in Poland is not specifically regulated as it is not considered part of the financial market, the office noted. So far, KNF has only published a warning about the risks associated with acquiring and trading crypto assets.
UOKiK established that false information about Polish regulatory approval was published on two websites, kanga.exchange and kangakantor.pl. Kanga Exchange has 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 contracts with users is also that of Belize.
The fact that a person authorized to represent the company is a citizen of Poland does not justify claims that the product offered is of Polish origin, Chróstny explained. Misleading consumers in this regard can affect their financial decisions. If they had known that Polish law did not apply, they could have opted out of using their services, he said.
If the charges against it are confirmed, Good Solution Investments would face a fine of up to 10% of its turnover for violating the collective interests of consumers. The company’s name is also on a warning list issued by the KNF and the case is being examined by the Warsaw District Prosecutor’s Office.
The Competition and Consumer Protection Office has taken action regarding other cryptocurrency platforms before, including Coincasso OÜ, which it fined, Lodz-based Selfmaker Technology, and Dubai-registered Selfmaker Smart Solutions, suspected of running a promotional system similar to a pyramid.
What do you think of the case against Kanga Exchange in Poland? Share your thoughts on the subject in the comments section below.
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