Polish currency exchange platform Cinkciarz.pl is preparing to transform into a joint-stock company (JSC), and is also actioning plans to obtain a European Union (EU) banking licence.
Cinkciarz.pl, which belongs to Conotoxia Holding, explained that it is preparing the necessary documents to convert into a JSC and believes the move will strengthen its financial stability and open up new business opportunities.
Cinkciarz.pl also says it is drawing up the necessary documentation to obtain a banking licence within the EU, which would enable it to introduce a full range of banking services. If it is granted the banking licence, all of its customers’ funds will be protected by the Bank Guarantee Fund.
The news comes after customers of the exchange continue to experience currency exchange delays, as Cinkciarz.pl experienced technical and operational challenges.
However, the Polish Financial Supervision Authority (KNF) has warned that Cinkciarz.pl may be misleading its customers with the announcement, explaining that it is yet to receive any application from the currency exchange to establish a domestic bank – suggesting that its message may confuse customers into thinking the process was further along or shorter than it is in reality.
Conotoxia claps back
Cinkciarz.pl quickly published a response to KNF’s statement explaining it was “taken aback” by the stance taken by the Polish regulator. In the statement, it argued that the KNF’s response was “clear evidence of the difficulty in reading documents with understanding”.
It explained that, in its original release, it made it clear that it was still in the process of preparing its application and highlighted four possible paths it could take to obtain a banking licence:
Sale of shares and integration into a larger organisation
Purchase of an existing bank with the appropriate licence
Applying for a banking licence independently
Partnership with an existing bank (banking as a service)
Finally, it concluded: “We hope that the above clarifications will be helpful and will avoid unnecessary misunderstandings and overinterpretations in the future, which could be perceived as a sign of KNF’s ill will. We encourage you to examine our communications more carefully before formulating further opinions.”
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