The President of the Office of Competition and Consumer Protection (UOKiK) has instituted proceedings against Good Solution Investments Limited, an operator of crypto exchange Kanga Exchange, for an infringement of consumers’ collective interests. The proceedings were initiated after the KNF reported dissemination of inaccurate information.

The allegations made against Good Solution Investments Limited concern:

• dissemination, on websites kanga.exchange and kangakantor.pl., of inaccurate information that the company’s ‘business model’ has been approved by the KNF. No such approval has been granted by the KNF. The crypto-currency and crypto-asset market does not represent financial market within the meaning of the Act on financial market supervision, therefore is not subject to the KNF supervision;
• promotion of the Kanga Exchange service on its website as a ‘Polish crypto exchange’. The Kanga Exchange service is provided by Good Solution Investments Limited based in Belize. According to the Terms of the Kanga Exchange service, the governing law for agreements between users and the operator concluded based on the Terms is the law of Belize.

Tomasz Chróstny, President of the UOKiK said: Consumers should be properly informed about the features of the products and services being offered to them. Providing untrue information about the origin of a company is misleading to consumers and may have an impact on their financial decisions. Writing about the company using the misleading words ‘Polish crypto exchange’ aims to create an impression that the service is reliable. If consumers had known right away that the Polish law was not the governing law for their agreement with the company, they perhaps would have considered the economic and legal risks and decided not to use the services.

The company is on the KNF’s list of public warnings in connection with the activity of the website kanga.exchange and the suspected offence of running a business of trading in financial instruments without the required permission or authorisation. The case is being investigated by the Regional Prosecutor’s Office in Warsaw (Prokuratura Okręgowa w Warszawie).

To find out more about the case, please visit:

https://uokik.gov.pl/aktualnosci.php?news_id=19230

Acquisition and trade of crypto-assets involves risk. Learn more about the KNF’s warnings here:

https://www.knf.gov.pl/knf/pl/komponenty/img/Ostrzezenie_UKNF_o_ryzykach_zwiazanych_z_nabywaniem_oraz_z_obrotem_kryptoaktywami_72241.pdf