Polish currency exchange platform Cinkciarz.pl has intensified its legal offensive against major banks, announcing plans to sue Credit Agricole's Polish unit for 1 billion zlotys ($250 million). This marks the latest development in an escalating dispute that has rattled the local financial sector.

Cinkciarz.pl to Seek $250M from Credit Agricole

The lawsuit alleges that Credit Agricole engaged in anti-competitive practices by illegally blocking Cinkciarz.pl's bank accounts and those of its customers, effectively hampering the fintech's currency exchange operations.

This legal action is part of a broader campaign by Cinkciarz.pl against what it describes as a coordinated effort by Polish banks to stifle competition in the foreign exchange market. The company has already initiated legal proceedings against several other major financial institutions, with total damages sought now exceeding 6.5 billion zlotys ($1.65 billion). Together with the newest announcement, it brings the total number to 11 banks and 6.75 billion zlotys.

“The Credit Agricole bank's action is part of a banking conspiracy that Cinkciarz.pl sp. z o.o. reveals,” Cinkciarz.pl commented in a statement. “It aims to eliminate the company as a competitor to the bank in exchange rates offered.”

The dispute has intensified following the Polish Financial Supervision Authority's (KNF) recent decision to revoke the payment services license of Conotoxia sp. z o.o., one of Cinkciarz.pl's subsidiaries. The company has vowed to challenge this regulatory action while simultaneously pursuing its claims against various banks.

Cinkciarz.pl has indicated it will petition the KNF to initiate administrative proceedings to review Credit Agricole's banking license in Poland.

KNF “Violates the Law” and “Destroy” Companies

The fintech company is challenging a recent decision by the KNF to revoke its payment services license, citing procedural issues and potential negative effects on its customers.

The KNF announced on October 2 that it had unanimously decided to revoke Conotoxia’s license, pointing to concerns over the company's payment service management practices. Conotoxia, however, contends it was not adequately notified about the decision and did not have the chance to access case files or present its defense.

In a formal statement, the company accused KNF of “violating the law” and claimed the regulator’s actions “harmed users.” Conotoxia suggests that the “current banking lobby” is prioritizing its interests at the expense of users and fintech competitors.

To ensure operational stability, Cinkciarz.pl is reportedly in advanced discussions with international investment funds in response to the license revocation.

It is worth nothing that Conotoxia sp. z o.o., the payments company and Conotoxia Ltd, the CySEC-regulated FX/CFD company, are not the same entities.

“Our company Conotoxia Ltd is a separate entity that holds a license to conduct brokerage activities in Poland, among other places,” Grzegorz Jaworski, CEO of Conotoxia Ltd, commented in the emailed statement.