The end of Conotoxia? Conotoxia without a payment services license
The Polish Financial Supervision Authority has withdrawn the authorization to provide payment services to Conotoxia, the owner of the Cinkciarz.pl platform. This decision has a direct impact on thousands of customers using the services of Polish fintech.
The Polish Financial Supervision Authority (KNF) issued a decision on withdrawal of the authorization to provide payment services by Conotoxia sp. z o. o This decision means that the company, known for operating under brand names Cinkciarz.pl and Cinkciarz.pl Marketingmust stop offering payment services in Poland.
The reason for the withdrawal of the authorization is the statement by the Polish Financial Supervision Authority that: Conotoxia failed to ensure prudent and stable management of its payment services business. In particular, the company failed to comply with its statutory obligations related to the protection of customer funds.
As a result of the administrative proceedings and on the basis of supervisory findings, the Polish Financial Supervision Authority concluded that the Company does not ensure prudent and stable management of its payment services activities, and therefore there is a reason to withdraw the Company’s authorization to provide payment services as a domestic payment institution, specified in Art. 69 section 1 point 2 in connection with joke. 64 section 1 point 3 of the Payment Services Act. The key factor for the above decision of the Polish Financial Supervision Authority was the Company’s failure to fulfill statutory obligations related to the protection of funds accepted from payment service users for the execution of payment transactions (Article 78(1-3) of the Payment Services Act).
– we read in the announcement of the Polish Financial Supervision Authority
What does this mean for Conotoxia customers?
- Stopping new services. Conotoxia can no longer enter into new payment account agreements or accept deposits or transfers to existing accounts.
- Withdrawals and transfers. Customers can continue to withdraw funds from their accounts or transfer them to accounts at other institutions.
- Termination of contracts. Conotoxia has time until December 31, 2024 to terminate all contracts for the provision of payment services and satisfy customer claims.
- Removal from the register. Conotoxia will be removed from the register of payment service providers kept by the Polish Financial Supervision Authority, together with its agents – Cinkciarz.pl sp. z o.o. and Cinkciarz.pl Marketing sp. z o.o.
The decision of the Polish Financial Supervision Authority is immediately enforceable. Conotoxia customers should read the company’s announcements and take the necessary steps to protect their funds.