Crypto Exchange Crypto.com Is Reportedly in Hot Waters with Polish Authorities

The Polish Financial Supervision Authority (KNF) recently issued a public warning about Foris DAX MT, a Crypto.com affiliated company based in Malta.

Crypto exchange Crypto.com is facing heat from Polish authorities over its affiliated company Foris DAX MT, which operates in Malta. The Polish Financial Supervision Authority (KNF) has issued a public warning about the exchange, but it is not yet a ban.

The warning from the KNF suggests that Foris DAX MT, which is known to be affiliated with Crypto.com, might be operating in Poland without the necessary recognition from the authorities. According to Polish law, any company providing financial services, including cryptocurrency exchanges, must register before commencing operations.

However, to the surprise of many, over 400 companies are currently operating without a license in Poland, and the KNF is yet to take any drastic actions against them. Interestingly, Crypto.com is among the few notable names on the list.

As expected, the KNF is not pleased with the presence of these unlicensed operators, and it is gradually submitting notifications to the Warsaw Regional Prosecutor’s Office concerning potential violations by these companies.

Despite the public warning, the KNF is not restricting Crypto.com’s operations in Poland. The warning serves as a notice to the public, highlighting the risks associated with using the exchange's services.

This development comes amidst a wider effort by Polish authorities to regulate the cryptocurrency industry. Earlier this year, the Polish government announced plans to introduce new regulations for crypto service providers, including licensing requirements and consumer protection measures.

Crypto.com is facing regulatory scrutiny not only in Poland but also in other jurisdictions. Recently, the exchange's co-founder announced a lawsuit against the U.S. Securities and Exchange Commission (SEC).

According to the announcement, Crypto.com is suing the SEC to protect the future of cryptocurrency in the United States. The exchange's co-founder, Kris, highlighted the impact of the agency's actions on millions of American crypto holders.

“Today, https://t.co/pFc4Pz9nFR filed suit against the SEC to protect the future of crypto in the U.S.: https://t.co/kXxyhF7zFe”

Kris went on to state that crypto users deserve clearer policies and industry-wide standards, which the SEC has failed to provide. He expressed hope that the lawsuit will bring attention to the urgent need for regulatory clarity in the crypto space.

“We believe that the next SEC chair should apologize to U.S. crypto holders (won't fix the past, but provides credibility). Also, stop targeting crypto businesses with 99% of the market slamming them with legal processes that impact crypto users. Instead, focus on the remaining 1%.“While he believes this won't correct the past, Armstrong states that it would help provide the much-needed credibility.

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