Polish fintech Conotoxia eyes EU banking licence, plans to transform into joint-stock company
Polish fintech Conotoxia has revealed plans to convert its online currency exchange business, Cinkciarz.pl, into a joint-stock company (JSC) and apply for a European banking licence.
Conotoxia to apply for EU banking licence
In a statement, Conotoxia says it will aim to complete the move “as soon as possible”, and confirms that “the necessary documents are being prepared”.
The strategic shift will transform the company into an organisation where ownership is divided into shares, and is expected to “open up new business opportunities”.
At the same time, the fintech reveals it is “drawing up the necessary documentation” to apply for a banking licence within the European Union.
Once granted, Conotoxia will be able to offer “a full range of banking services”, with all customer funds automatically protected by the Bank Guarantee Fund.
The Polish Financial Supervision Authority (PFSA/KNF) previously withdrew Conotoxia’s authorisation to provide payment services in Poland as a national payment institution on 2 October.
In a statement posted on 14 October, the regulator said: “The proceedings of the PFSA conducted in accordance with the provisions of the Code of Administrative Procedure (APC) showed that the Company does not meet the requirements necessary to have a permit to provide payment services, including failure to ensure prudent and stable management of the activity in the field of payment services and does not comply with statutory obligations related to the protection of funds accepted from users of payment services for the purpose of payment transactions.”
“Cinkciarz.pl, whose operation as an online currency exchange service is not regulated and is not subject to the supervision of the Polish Financial Supervision Authority, can continue to provide foreign exchange services, which is the main area of activity of this company,” the statement continues.
In a notice posted to its website on 4 October, Conotoxia said: “The Company is implementing all of the KNF’s recommendations as set out in the post-audit protocol in accordance with the KNF’s recommendations and the agreed-upon timetable.
“At the same time, we would like to inform you that the Company strongly opposes the issued decision. Acting in the best interest of our customers, we are taking all legal steps to revoke the decision taken by the KNF as soon as possible.”
