Poland Launches National Media Campaign to Warn Against FX, Crypto Investments

With many people afraid of missing out on the chance to make ‎easy money, Poland’s authorities are launching a campaign to educate its ‎citizens on the potential risks involved when it comes to cryptocurrency and margin ‎trading‏.‏

The country’s financial regulatory body, the Polish Financial Supervision ‎Authority (KNF) is behind the campaign, which warns of the investment risks ‎using advertisements on the country’s radio and television stations, and in ‎print and digital media‏.‏

There’s no preview of these adverts, but the campaign is scheduled to go on air in June. The ‎KNF has already allocated 1.75 million zloty ($474,886) for ads on radio and television ‎and 615,000 zloty ($166,888) for the internet and social media ads.‎

The increase in media coverage and hype around ICOs and ‎Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term has aroused public interest. However, the public might use ‎these as speculative tools without full understanding of their nature and ‎potential risks, according to a translated extract.‎

Lack of proper regulations

‎“The aim of the campaign is to make sure that people who want to invest ‎their money do not trust those who offer easy, safe and high profits. It is ‎highly probable that such schemes may have the character of a financial ‎pyramid, i.e., a situation in which the profit of a given person depends on ‎Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term made by persons below the structure,” explains Jacek ‎Barszczewski, spokesman of the Polish regulator‏.‏

The campaign also notes the lack of proper regulations in place which means ‎that crypto assets are somewhat murky for investors to be kept safe, unlike ‎strictly regulated traditional financial markets. ‎

Earlier this month, Poland’s finance ministry published an ‎update of the country’s tax ‎code, stating that it will not tax ‎income from transactions on ‎cryptocurrencies.‎ The MoF ‎justified its taxing decision by stating that it considers ‎conducting an in-depth analysis to better regulate the ‎emerging industry.‎

The KNF also plans ICOs warning to be accompanied by a wider crackdown ‎on unregulated margin trading. It says the fraud in such fields, which ‎includes, among others, leveraged forex trading, is being committed by brokers ‎that encourage investors to make seemingly simple bets on whether ‎shares, currencies or other financial instruments will rise or fall in value. ‎

Earlier in April, the Polish police carried ‎out a raid on the ‎Warsaw offices of Amplio Investments, a company that ‎‎operates call centers for several forex brands, including ‎CFD 1000, VORTEX ‎ASSETS, and MIB 700. Authorities ‎have arrested 20 of the company’s top managers ‎and ‎salespeople‏.‏