Polish currency exchange platform Cinkciarz.pl has announced plans to sue two more major banks operating in the country. This time, the fintech is seeking at least 1.5 billion zlotys ($375 million) from Citibank and PKO BP.

Cinkciarz.pl and Conotoxia Plan to Sue a Total of 10 Polish Banks

According to the latest statement from Cinkciarz.pl sp. z o.o. and Conotoxia sp. z o.o. published today (Tuesday), the online currency exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term and payment institution intend to take legal action against PKO BP, demanding at least 1 billion zlotys ($250 million).

"The grounds for the lawsuit are the bank's collusion and refusal to provide the companies with financing in the form of investment and working capital loans," the companies wrote in the statement.

Last week, a similar note was issued regarding Citibank, seeking damages of 500 million zlotys ($125 million).

It all started when the Polish regulator, KNF, announced at the beginning of this month that it was revoking Conotoxia sp. z o.o.'s license to provide payment services, which will cut off the exchange office from further operations.

This increases the number of banks that Cinkciarz.pl and Conotoxia want to sue to a total of 10, with potential damages amounting to 6.5 billion zlotys ($1.65 billion). The growing list since the beginning of this month includes mBank, BPS (twice), BOŚ Bank, Credit Agricole, ING Bank Śląski, Bank Millennium, and Getin Bank.

According to Cinkciarz.pl, these banks have allegedly engaged in anti-competitive practices and violated the principle of equal treatment of companies by banks.

"PKO BP S.A., like many other banks, has imposed a total ban on cooperation with entities from the Conotoxia group, which is detrimental not only to the companies' interests but also to the welfare of customers," they commented on the matter.

Conotoxia Alleges Polish KNF "Violates the Law"

The news of Conotoxia's license revocation has put the payment company into a veritable berserker mode. An all-out war with almost all major Polish banks is not all, as Finance Magnates reported yesterday (Monday) that the Polish fintech also has complaints against the regulator.

In its statement, the company openly admits that KNF "violates the law," and that the introduced regulations, instead of helping, "destroy" companies. The actions taken by the regulator may allegedly disrupt services for 100,000 users and cause billions in damages.

Conotoxia wants to fight against the "current banking lobby," which it believes protects its own interests, placing them above the welfare of users and the competitive chances of fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term companies.

"The KNF violated the provision of Article 105(1)(6) of the Payment Services Act. Given a choice of six supervisory measures against a Company with no previous administrative penalties, it decided to wind it up straight away, a phenomenon in supervision that should help entities solve their problems, not destroy them," the company commented in another of the series of statements made in recent days.

Conotoxia Sp. z o.o. is Not the Same Company as Conotoxia Ltd

It's worth emphasizing that Conotoxia Sp. z o.o., the Polish payment company whose license was revoked by KNF, is a different entity from Conotoxia Ltd, a CySEC-regulated retail FX/CFD broker. Although the activities of both are completely independent, it's easy to confuse them.

Finance Magnates learned that due to the similarity in names, the Cypriot regulator has also reportedly taken interest in the situation. Grzegorz Jaworski, CEO of Conotoxia Ltd, a broker licensed by CySEC, addressed the matter in a letter sent last week to "clients, contractors, business partners, and media," emphasizing that the recent actions by the KNF did not involve the company he represents.

"Our company Conotoxia Ltd is a separate entity that holds a license to conduct brokerage activities in Poland, among other places," Jaworski stated. "Our company does not and has never provided any payment services to clients and has nothing to do with the Polish Financial Supervision Authority's decision regarding Conotoxia sp. z o.o."

He added that the KNF's decision has not affected the operations of the broker Conotoxia Ltd in any way.