Polish Regulators Warn Banks and Consumers on Cryptocurrency Risks

A pair of Polish regulators stated right now that traders and banks ought to keep away from coping with digital currencies like bitcoin and ether.

In a joint statement, the Polish National Bank and the Financial Supervision Commission delivered a broad warning in opposition to investing in digital currencies, citing worth volatility and the chance of fraud. The regulators clarified that cryptocurrencies – it identifies bitcoin, litecoin and ether – are usually not thought-about authorized tender in Poland.

While the assertion itself doesn’t define any particular coverage measures in mild of the tech, it does state that monetary establishments ought to keep away from doing enterprise with cryptocurrency trade providers “in particular with regard to the risk of exploitation of these entities for money laundering and terrorist financing”, in response to the assertion.

“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 needs to be distinguished from cryptocurrency functions, the regulators referred to as for elevated scrutiny earlier than any broader adoption occurs.

“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 assertion learn.

In February, CoinDesk reported that Poland’s monetary ombudsman, Aleksandra Wiktorow, urged the nation’s Ministry of Finance to manage cryptocurrency exchanges. That name adopted the closure of Bitcurex, the nation’s oldest bitcoin trade, which sparked an investigation by native authorities.

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