- Polish regulator adds crypto.com operator to warning list.
- Foris DAX MT allegedly operated without a license.
- Earlier, Dutch regulators flagged crypto.com.
Europe is one of the only major jurisdictions with a clear and predictable framework for crypto. Unlike other major economies, the European Union established a clear and comprehensive regulatory framework for crypto. At least, thatโs how it seemed until a series of regulatory challenges against crypto companies.ย
Polandโs Financial Supervision Authority, known as KNF, recently put a Crypto.com operator on its warning list. This move has raised questions about how crypto exchanges will continue to navigate European regulations.ย
Crypto.com Faces Regulatory Action in Poland
Crypto.com became the latest exchange to face legal challenges in Europe. On Wednesday, November 6, Polandโs KNF added Foris DAX MT, the operating entity behind Crypto.com, to its public warning list. The regulator claims that Foris DAX MT offered financial advisory services in Poland without proper authorization.
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The regulator forwarded the information to Polandโs public prosecutor in Warsaw. Prosecutors will now investigate the issue, which could lead to formal charges against Foris DAX MT and subsequent litigation. At the time, Crypto.com did not respond to the allegations.ย
This is not the first time Foris DAX MT has faced legal challenges in the European Union. In March, the Dutch central bank fined Foris DAX MT $3.1 million over its anti-money laundering (AML) and counter-terrorist financing (CTF) practices.ย
European Regulators Clamp Down on Exchanges
The latest move comes after the European Unionโs comprehensive crypto regulations have taken effect. Unlike many other jurisdictions, the European Union took a proactive approach to crypto regulations. Its Markets in Crypto Assets (MiCA) regulation aimed to establish a comprehensive regulatory framework.
Despite the clear regulatory framework, issues still arise for exchanges that canโt meet the stringent regulatory requirements. In August, crypto exchange Bybit shut down in France due to regulatory pressures. Still, other exchanges, like Coinbase, adapt quickly and may benefit from decreased competition.ย
It seems that only the largest exchanges can now meet the stringent regulatory requirements in Europe. This may result in a safer environment for traders but also one with fewer choices.ย
On the Flipside
- Crypto companies secured a major win in the US, as pro-crypto candidates secured Congress seats in the 2024 elections. However, the situation in Europe is significantly different.
- Another crypto firm, Polymarket, is facing regulatory backlash and a potential ban in France. This news comes after one French millionaire won over $40 million on his bet on Trumpโs election win
Why This Matters
The regulatory action against Crypto.comโs operator in Poland has significant implications for the exchange. It also affects the entire European crypto market, especially for centralized exchanges.ย
Read more about crypto.comโs legal action against the SEC:
Crypto.com Sues SEC to โProtectโ Cryptoโs Future in the U.S.
Read more about cryptoโs influence on US elections:
Why Pro-Crypto Candidates Dominated 2024 U.S. Elections
