Poland Adds Crypto.com’s Operator to Financial Warning List – What’s Going On?

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Jimmy Aki

Author

Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, Business2Community, and…

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Last updated:

November 7, 2024 10:12 EST

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The Polish Financial Supervision Authority (FSC) added Foris DAX MT, the operator of the Crypto.com exchange, to its financial warning list on November 6, intensifying regulatory scrutiny on crypto platforms operating without proper authorization in Poland.

The regulator alleges that Foris DAX MT has been offering financial services in Poland without the necessary authorization.

This regulatory action reveals the intensified oversight crypto platforms are encountering across Europe, as authorities strive to protect consumers and uphold compliance.

Poland and Other European Watchdogs Increase Crypto Security

The updated financial warning list, published on November 6, officially places Crypto.com under heightened scrutiny by Polish regulators, with the regional prosecutor’s office in Warsaw assigned to investigate its activities.

Poland has previously taken action against other cryptocurrency companies for similar reasons, including BitBay, now operating as Zonda, one of Poland’s largest exchanges, which is also on the FSC’s warning list amid suspicions of criminal activity.

These recent updates reveal a firm stance by Polish authorities on unregulated crypto activities, echoing broader European concerns around investor protection and regulatory compliance.

This heightened scrutiny in Poland mirrors a regulatory trend taking shape across Europe.

In the UK, for example, the Financial Conduct Authority (FCA) placed Bitfinex on its financial warning list, advising consumers against engaging with the exchange.

The FCA clarified on its website that Bitfinex lacks UK authorization and may unlawfully target consumers in the region, signaling the UK’s commitment to protecting its markets from unapproved crypto activities.

This warning came after the regulator reported that 87% of crypto firms failed to secure licensing under the country’s money laundering regulations.

For Crypto.com, this marks its second major regulatory challenge within the European Union this year.

On March 13, the Dutch central bank, De Nederlandsche Bank (DNB), imposed a hefty administrative fine of €2.85 million (approximately $3.1 million) on Foris DAX MT.

The DNB stated that Foris DAX MT violated the nation’s anti-money laundering and anti-terrorist financing regulations, categorizing the infraction as a level 3 violation due to its severity and duration.

Recently, the DNB also fined Bybit €2.25 million for unlicensed crypto operations, reinforcing the focus on regulatory compliance within Europe.

The recent actions from Poland, along with similar moves by UK and Dutch regulators, highlight a coordinated effort across Europe to curb unregulated crypto activities, protect investors, and enforce local laws.