The cryptocurrency market is “neither regulated nor subject to supervision” to the Polish Financial Supervision Authority, the regulator said.
Poland financial regulator issues public warning about BinanceNEWS
As Binance faces scrutiny from regulators around the globe, Poland’s finance watchdog has issued a consumer warning about the cryptocurrency exchange.
On Wednesday, the Polish Financial Supervision Authority (PFSA) published a statement on Binance’s growing regulatory issues around the world, stressing that the company’s operations are unregulated in Central European countries.
The crypto market is “neither regulated nor subject to supervision” by the PFSA, the regulator noted, cautioning the public about the risks associated with trading on Binance, given the growing pushback to the exchange from global financial regulators, stating:
“In line with the protection of financial market participants and warnings of foreign supervisory authorities, the PFSA office recommends exercising special caution when using services of Binance group entities and trading cryptocurrencies, as it may involve a significant risk that may result in the loss of funds.”
The PFSA mentioned several regulatory warnings against Binance by global regulators, including those issued by the German Federal Financial Supervisory Authority, the United Kingdom’s Financial Conduct Authority, the Cayman Islands Monetary Authority, as well as the Securities and Exchange Commission of Thailand. As previously reported, Binance is subject to regulatory investigations and reviews in countries such as Canada, Japan, the United States and Singapore.
Additionally, the PFSA referred to its January warning on the general risks of investing in cryptocurrencies like Bitcoin (BTC), stating that the crypto market is not regulated in Poland.
Related: Binance suspends euro bank transfers amid regulatory heat
The PFSA and Binance did not immediately respond to Cointelegraph’s request for comment.
The PFSA’s statement comes shortly after Binance CEO Changpeng Zhao reiterated the company’s commitment to cooperating with global regulators in order to comply with financial market regulations. The CEO stated that there is still a lot of regulatory uncertainty around crypto but welcomed more regulations as they are, in his view, “positive signs that an industry is maturing.”
A new survey paints a bleak picture of British crypto investors’ motivations, knowledge and exposure when it comes to their investments.
Almost two in five (36%) of retail crypto investors in the country have conceded that their understanding of the sector was “poor or non-existent” when they made their first investments. As time has gone on, 21% of investors holding crypto still rated their knowledge of the sector as being equally low.
The survey was conducted by Oxford Risk, a commercial software firm whose focus is on products for wealth managers and financial services firms.
While small – just 1,038 respondents – the research sample for the survey was reportedly weighted to reflect the United Kingdom’s demographic profile.
In addition to low levels of investment literacy when it comes to crypto, the survey indicated that demand for digital assets was driven by FOMO, or fear of missing out. Some 35% of respondents said they read widely about skyrocketing crypto prices and 15% said they had been encouraged to invest in the sector by their friends or family. Greg B Davies, head of behavioural finance at Oxford Risk, said:
“The concern is that too many people are buying blind without knowing what they’re doing and are being influenced to invest by rising prices and other people encouraging them to have a go. That is worrying if people have substantial amounts invested in cryptos and do not understand what they have bought.”
A large minority are also still unsure about the market’s future: 45% responded that they don’t know whether there will be continued price appreciation, 32% were unconvinced there would be, and 24% were firm believers that there would. Regardless, 21% of respondents plan to either buy crypto for the first time this year or increase their current holdings.
Notably, most investors have put in relatively small amounts of cash into the sector: 81% said they’d bought just a bit of crypto in the spirit of “see what happens,” 76% have invested less than 5% or less of their total savings and 41% less than 1%. 7% of investors, however, have staked as much as 20% of their total assets in crypto, whereas 10% have staked more than 10%.
According to a recent study by the U.K.’s Financial Conduct Authority, 2.3 million adults in the country held crypto assets as of June 2021, up from 1.9 million last year. In addition to the increased number of investors, the FCA found that median holdings had risen to £300 ($420), up from £260 ($370) in 2020.
This uptick was accompanied by an increase in awareness levels, with 78% of U.K. adults saying they’d heard of crypto — again, up from 73% the previous year. However, just like Oxford Risk, the FCA remarked on a notable decline in the understanding of crypto, similarly suggesting that many consumers did not understand the technology and industry.