Polish
fintech Conotoxia, operator of the currency exchange platform Cinkciarz.pl, is
in advanced talks with international investment funds as it works to stabilize
operations following the recent revocation of its payment services license by
Poland’s financial regulator KNF.
Polish Fintech Conotoxia
in Advanced Investment Talks
The fintech
giant is in advanced negotiations with international investment funds as it
seeks to stabilize operations following recent regulatory setbacks. Three weeks ago, KNF decided to revoke the company’s payment license, preventing it from providing currency exchange services normally.
“Conotoxia
sp. z o.o. reports that its priority today is to seek an investor whose support
would enable the company’s further development. The company is in advanced
talks with international investment funds about this,” the company commented in
a statement from today (Wednesday).
In response
to recent media reports suggesting potential financial shortfalls, Conotoxia
stated the claims were based on “unconfirmed and anonymous” sources.
The company also criticized what it called systematic obstacles from Polish
banks, claiming they have restricted cooperation with entities from its group.
It “significantly
impedes the owner’s ability to negotiate with potential investors with whom
talks are underway to raise funds for the company’s further development and
expansion,” Conotoxia added.
The current
chaos has allegedly disrupted a previously secured financing arrangement with a
foreign bank, according to company statements.
That is why
Conotoxia decided to engage in
a full-scale battle with local financial institutions. In its current
“berserker mode,” the fintech plans to sue 10 banks for a total of
6.5 billion zlotys.
Conotoxia to Challenge KNF
The KNF’s
October decision cited concerns about the company’s management of payment
services and ordered Conotoxia to cease opening new payment accounts. Existing
clients have until December 31, 2024, to withdraw or transfer their funds.
The fintech
plans to contest the regulatory move and file for a court suspension of its
immediate enforcement.
“Conotoxia
sp. z o.o. is taking the necessary steps to eliminate the KNF’s decision from
legal circulation. Within a few days, we will challenge the decision itself and
file a request to the court to lift the order of its immediate enforceability,”
the Polish fintech concluded.
Two weeks
earlier, Conotoxia openly accused
KNF of “violating the law” and of enforcing regulations that are “destroying”
licensed companies.
Conotoxia’s
currency exchange operations, conducted through separate entities, including CySEC-regulated,
Conotoxia Ltd, remain 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.
This article was written by Damian Chmiel at www.financemagnates.com.
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