Polish
fintech company Cinkciarz.pl (Conotoxia) sparked controversy this week after
announcing plans to transform into a joint-stock company and pursue a banking
license, drawing immediate pushback from Poland’s financial regulator, KNF.

Cinkciarz.pl’s Banking
Pivot Draws Regulatory Warning

The
currency exchange platform, which has recently faced operational challenges,
revealed its strategic transformation amid reports of customer payment delays.
The company plans to convert from a limited liability company to a joint-stock
structure while simultaneously preparing banking license documentation.

The move
comes more than a month after
KNF revoked Conotoxia sp. z o.o.’s, one of fintech ’s subsidiaries operating
in Poland, payment services license.

“The
transformation will strengthen our financial stability and open up new business
opportunities,” Cinkciarz.pl stated in its initial announcement. The
company emphasized that obtaining a banking license would provide customers
with deposit protection through a bank guarantee fund.

However,
Poland’s KNF quickly
challenged these claims, stating that neither Cinkciarz.pl nor its
affiliated entities had filed any applications for a domestic banking license.
The regulator warned that suggesting a swift licensing process could mislead
customers about both the timeline and potential outcomes.

“Cinkciarz.pl
and its associated entities have not applied to the KF for authorization to
establish a domestic bank, and as a result, the KNF is not conducting any
proceedings that could lead to such an authorization,” the regulator commented.
“Cinkciarz.pl may mislead recipients.”

As the KNF
explains, the regulatory requirements for establishing a new bank in Poland
include a minimum capital requirement of €5 million and a multi-stage approval
process. Any new bank must also contribute to the Bank Guarantee Fund before
commencing operations.

Cinkciarz.pl “Grills” KNF
(Again)

In response
to KNF’s criticism, Cinkciarz.pl clarified that it was exploring multiple
pathways to obtain a banking license, including potential mergers,
acquisitions, or banking-as-a-service partnerships. The company also emphasized
that its banking ambitions extend beyond Poland to the broader European Union.

“The KNF’s
interpretation of our communications is clear evidence of the difficulty in
reading documents with understanding,” Cinkciarz.pl added in harsh words. “This
is a further argument for the need to restructure the KNF to ensure a
consistent, transparent, and fair operation.”

This is not
the first time Cinkciarz.pl has shown a lack of “diplomacy” in its
official statements. Previously, it suggested that the KNF “violates the
law” and that regulations, rather than supporting businesses,
“destroy” companies. The fintech has also accused the entire Polish
banking sector of “conspiracy” against fintech competition and
intends to sue 11 of Poland’s largest financial institutions for a total
currently exceeding 6.75 billion zlotys ($1.65 billion).

At the end
of last month, the company disclosed it was in “advanced talks” with
international investment funds, seeking ways to stabilize its operations
following the loss of its license.

It’s worth
noting that Conotoxia Ltd., the Cyprus-based entity responsible for CFD
trading, remains unaffected by the license revocation.

“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.