Polish
currency exchange platform Cinkciarz.pl has intensified its legal offensive
against major banks, announcing plans to sue Credit Agricole’s Polish unit for
1 billion zlotys ($250 million), marking the latest development in an
escalating dispute that has rattled local financial sector.
Cinkciarz.pl to Seek $250M
from Credit Agricole
The lawsuit
alleges that Credit Agricole engaged in anti-competitive practices by illegally
blocking Cinkciarz.pl’s bank accounts and those of its customers, effectively
hampering the fintech’s currency exchange operations.
This legal
action is part of a broader campaign by Cinkciarz.pl against what it describes
as a coordinated effort by Polish banks to stifle competition in the foreign
exchange market. The company has already initiated legal proceedings against
several other major financial institutions, with total damages sought now
exceeding 6.5 billion zlotys ($1.65 billion). Together with the newest
announcement, it bring the total number to 11 banks and 6,75 billion zlotys.
“The Credit
Agricole bank’s action is part of a banking conspiracy that Cinkciarz.pl sp. z
o.o. reveals,” Cinkciarz.pl commented in a statement. “It aims to eliminate the
company as a competitor to the bank in exchange rates offered.”
The dispute
has intensified following the Polish Financial Supervision Authority’s (KNF)
recent decision to revoke the payment services license of Conotoxia sp. z o.o.,
one of the Cinkciarz.pl’s subsidiary. The company has vowed to challenge this
regulatory action while simultaneously pursuing its claims against various
banks.
Cinkciarz.pl
has indicated it will petition the KNF to initiate administrative proceedings
to review Credit Agricole’s banking license in Poland.
KNF “Violates the Law” and
“Destroy” Companies
The fintech
company is challenging a recent decision by the KNF to revoke its payment
services license, citing procedural issues and potential negative effects on
its customers.
The KNF
announced on October 2 that it had unanimously decided to revoke Conotoxia’s
license, pointing to concerns over the company’s payment service management
practices. Conotoxia, however, contends it was not adequately notified about
the decision and did not have the chance to access case files or present its
defense.
In a formal
statement, the company accused KNF of “violating the law” and claimed
the regulator’s actions “harmed users.” Conotoxia suggests that the
“current banking lobby” is prioritizing its interests at the expense of users
and fintech competitors.
To ensure
operational stability, Cinkciarz.pl is reportedly in advanced discussions with
international investment funds in response to the license revocation.
It is worth
nothing that Conotoxia sp. z o.o., the payments company and Conotoxia Ltd, the
CySEC-regulated FX/CFD company, are not the same entities.
“Our
company Conotoxia Ltd is a separate entity that holds a license to conduct
brokerage activities in Poland, among other places,” Grzegorz Jaworski, CEO of
Conotoxia Ltd, commented in the emailed statement.
Polish
currency exchange platform Cinkciarz.pl has intensified its legal offensive
against major banks, announcing plans to sue Credit Agricole’s Polish unit for
1 billion zlotys ($250 million), marking the latest development in an
escalating dispute that has rattled local financial sector.
Cinkciarz.pl to Seek $250M
from Credit Agricole
The lawsuit
alleges that Credit Agricole engaged in anti-competitive practices by illegally
blocking Cinkciarz.pl’s bank accounts and those of its customers, effectively
hampering the fintech’s currency exchange operations.
This legal
action is part of a broader campaign by Cinkciarz.pl against what it describes
as a coordinated effort by Polish banks to stifle competition in the foreign
exchange market. The company has already initiated legal proceedings against
several other major financial institutions, with total damages sought now
exceeding 6.5 billion zlotys ($1.65 billion). Together with the newest
announcement, it bring the total number to 11 banks and 6,75 billion zlotys.
“The Credit
Agricole bank’s action is part of a banking conspiracy that Cinkciarz.pl sp. z
o.o. reveals,” Cinkciarz.pl commented in a statement. “It aims to eliminate the
company as a competitor to the bank in exchange rates offered.”
The dispute
has intensified following the Polish Financial Supervision Authority’s (KNF)
recent decision to revoke the payment services license of Conotoxia sp. z o.o.,
one of the Cinkciarz.pl’s subsidiary. The company has vowed to challenge this
regulatory action while simultaneously pursuing its claims against various
banks.
Cinkciarz.pl
has indicated it will petition the KNF to initiate administrative proceedings
to review Credit Agricole’s banking license in Poland.
KNF “Violates the Law” and
“Destroy” Companies
The fintech
company is challenging a recent decision by the KNF to revoke its payment
services license, citing procedural issues and potential negative effects on
its customers.
The KNF
announced on October 2 that it had unanimously decided to revoke Conotoxia’s
license, pointing to concerns over the company’s payment service management
practices. Conotoxia, however, contends it was not adequately notified about
the decision and did not have the chance to access case files or present its
defense.
In a formal
statement, the company accused KNF of “violating the law” and claimed
the regulator’s actions “harmed users.” Conotoxia suggests that the
“current banking lobby” is prioritizing its interests at the expense of users
and fintech competitors.
To ensure
operational stability, Cinkciarz.pl is reportedly in advanced discussions with
international investment funds in response to the license revocation.
It is worth
nothing that Conotoxia sp. z o.o., the payments company and Conotoxia Ltd, the
CySEC-regulated FX/CFD company, are not the same entities.
“Our
company Conotoxia Ltd is a separate entity that holds a license to conduct
brokerage activities in Poland, among other places,” Grzegorz Jaworski, CEO of
Conotoxia Ltd, commented in the emailed statement.
This post is originally published on FINANCEMAGNATES.
