UOKiK has initiated proceedings against Good Solution Investments Limited, the operator of the Kanga Exchange cryptocurrency exchange

“Kanga Exchange is a cryptocurrency exchange, which on its website ensured that its ‘business model’ was approved by the Polish Financial Supervision Authority. The President of the Office of Competition and Consumer Protection, after being notified by the KNF of the dissemination of untrue information, initiated proceedings regarding the violation of collective consumer interests The website operator, Good Solution Investments Limited, has been charged,” he said UOKiK.

– Cryptocurrency exchange Kanga Exchange never got the approval it claims. Moreover, its activities are not subject to supervision or assessment by the Polish Financial Supervision Authority. Providing such information could mislead consumers as to the legality and safety of the operations performed, and in an unauthorized manner make the undertaking credible compared to other entities, said Tomasz Chróstny, President of UOKiK, quoted in the communication.

The Office indicated that “the cryptocurrency and crypto-assets market does not have a specific regulation, as it is not part of the financial market within the meaning of the regulations”. “On the KNF website, there is a Warning about the risks associated with the purchase and trading of crypto-assets. The findings of the President of the Office show that information about the alleged approval of the regulator was to be disseminated on the kanga.exchange and kangakantor.pl websites,” the release said.

It was added that “another accusation concerns the promotion of Kanga Exchange on its website by using the phrase that it is a ‘Polish cryptocurrency exchange'”. “The operator of the Kanga Exchange service is Good Solution Investments Limited with its registered office in Belize. What is important, according to the regulations, the law applicable to contracts with users is also the law of Belize. In this situation, the fact that the person authorized to represent the company is a Polish citizen, in the opinion The President of the Office does not justify the dissemination of information about the Polish origin of the product.

– Consumers should be reliably informed about the features of the products and services offered. Indicating the wrong origin of the company misleads consumers and may affect their financial decisions. The questioned entry about the “Polish cryptocurrency exchange” is to authenticate the operation of the website. If consumers immediately knew that Polish law is not the law applicable to the performance of the contract with the company, they could take into account the economic and legal risks and decide not to use the services offered, stressed Chróstny.

“If the allegations of infringement of collective consumer interests are confirmed, Good Solution Investmenst Limited may be fined up to 10% of its turnover. The company is also on the list of warnings issued by the Polish Financial Supervision Authority in connection with the functioning of the kanga.exchange website due to the possibility of committing a crime. The case is being investigated by the District Prosecutor’s Office in Warsaw.

UOKiK announced in a communication that this is not the only activity of the President of UOKiK on the crypto-assets market in recent times. “The Office tracks, investigates and takes action against entrepreneurs who, like Kanga.Exchange, run cryptocurrency exchanges or encourage ‘modern’ forms of investing using tokens or other cryptoassets. In 2022, the President of UOKiK issued, among others, a decision in which recognized the practice of Coincasso OÜ as infringing collective consumer interests and imposed a fine on the company.

He added that “proceedings against Selfmaker Smart Solutions from Dubai and Selfmaker Technology from Łódź are pending”, and “in addition to the companies, five entrepreneurs promoting the Selfmaker Smart Solutions affiliate program, which may be based on a pyramid-type promotional system, have also heard charges”.

“For many years, the President of UOKiK has also been conducting educational activities warning consumers against reckless investment in the so-called alternative investments, including crypto-assets. For example, it was one of the topics of the UOKiK President’s social campaign ‘Count and don’t miscalculate'” – the release reads. .