Polish Regulators Warn Banks and Consumers on Cryptocurrency Risks

Polish Regulators Warn Banks and Consumers on Cryptocurrency Risks


- Advertisment -

A pair of Polish regulators said today that investors and banks should avoid dealing with digital currencies like bitcoin and ether.

In a joint statement, the Polish National Bank and the Financial Supervision Commission delivered a broad warning against investing in digital currencies, citing price volatility and the risk of fraud. The regulators clarified that cryptocurrencies – it identifies bitcoin, litecoin and ether – are not considered legal tender in Poland.

While the statement itself does not outline any specific policy measures in light of the tech, it does state that financial institutions should avoid doing business with cryptocurrency exchange services “in particular with regard to the risk of exploitation of these entities for money laundering and terrorist financing”, according to the statement.

“The decision in this regard should be preceded by a thorough analysis of the potential consequences, including legal risk and reputation risk,” the regulators added.

While arguing that distributed ledger tech should be distinguished from cryptocurrency applications, the regulators called for increased scrutiny before any broader adoption happens.

“Many functional, operational and legal aspects of this technology, however, should be subject to a detailed and thorough analyzes and tests before the mass introduction of the financial market,” the statement read.

In February, CoinDesk reported that Poland’s financial ombudsman, Aleksandra Wiktorow, urged the country’s Ministry of Finance to regulate cryptocurrency exchanges. That call followed the closure of Bitcurex, the country’s oldest bitcoin exchange, which sparked an investigation by local authorities.

Image via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Source link

Latest news

What’s the future of decentralized blockchains?

When Bitcoin was new and not valued at anything or just a few cents anyone could join...

My 5 favorite free crypto tools & sites I use daily

So I often get asked by friends, or people visiting my site about new tips for exciting...

Cryptocurrency is The Last Kingdom Where You Can Keep Your Data Private

Data privacy has been a hot topic for quite some time now and particularly after the popularity...

How To Travel With Bitcoin: 9 Travel Companies Accepting Bitcoin

Bitcoin travel is a reality, as several travel companies now accept payments in cryptocurrencies for their services.
- Advertisement -Polish Regulators Warn Banks and Consumers on Cryptocurrency Risks

Top 5 Ways To Build a Profitable Business in The Crypto Sector

The crypto industry has grown significantly despite criticism and a skeptical approach from regulators across the globe....

These 8 Cryptocurrencies Will Survive the Next Decade

Cryptocurrency is the future, we all have reasons to believe it. But are people ready...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you