Polish fintech Conotoxia, operator of the currency exchange platform Cinkciarz.pl, is in advanced talks with international investment funds as it works to stabilize operations following the recent revocation of its payment services license by Poland's financial regulator KNF.

Polish Fintech Conotoxia in Advanced Investment Talks

The fintech giant is in advanced negotiations with international investment funds as it seeks to stabilize operations following recent regulatory setbacks. Three weeks ago, KNF decided to revoke the company’s payment license, preventing it from providing currency exchange services normally.

“Conotoxia sp. z o.o. reports that its priority today is to seek an investor whose support would enable the company's further development. The company is in advanced talks with international investment funds about this,” the company commented in a statement from today (Wednesday).

In response to recent media reports suggesting potential financial shortfalls, Conotoxia stated the claims were based on “unconfirmed and anonymous” sources. The company also criticized what it called systematic obstacles from Polish banks, claiming they have restricted cooperation with entities from its group.

It “significantly impedes the owner's ability to negotiate with potential investors with whom talks are underway to raise funds for the company's further development and expansion,” Conotoxia added.

The current chaos has allegedly disrupted a previously secured financing arrangement with a foreign bank, according to company statements.

That is why Conotoxia decided to engage in a full-scale battle with local financial institutions. In its current “berserker mode,” the fintech plans to sue ten banks for a total of 6.5 billion zlotys.

Conotoxia to Challenge KNF

The KNF's October decision cited concerns about the company's management of payment services and ordered Conotoxia to cease opening new payment accounts. Existing clients have until December 31, 2024, to withdraw or transfer their funds.

The fintech plans to contest the regulatory move and file for a court suspension of its immediate enforcement.

“Conotoxia sp. z o.o. is taking the necessary steps to eliminate the KNF's decision from legal circulation. Within a few days, we will challenge the decision itself and file a request to the court to lift the order of its immediate enforceability,” the Polish fintech concluded.

Two weeks earlier, Conotoxia openly accused KNF of “violating the law” and of enforcing regulations that are “destroying” licensed companies.

Conotoxia's currency exchange operations, conducted through separate entities, including CySEC-regulated, Conotoxia Ltd, remain unaffected by the license revocation.

“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.