KNF’s role in crypto regulation: key powers explained 🔍
- Admin
- Nov 19, 2024
- 1 min read
The Polish Financial Supervision Authority ("PFSA", Polish: “KNF”) has traditionally overseen sectors like banking, insurance, pensions, capital markets, payment institutions, and lending. Yet, with the introduction of the new draft Cryptocurrency Act, in accordance with #MiCA, the scope of PFSA's authority is broadening to encompass the cryptocurrency sector. 🌐
Key powers include:
1. Inspection and control: PFSA can inspect certain token issuers as well as CASPs for legal compliance. (Art. 21)
2. Access to confidential information: PFSA can access to necessary confidential and professional secret information of CASPs. (Art. 22)
3. Cross-border cooperation and information sharing: PFSA facilitates information exchange with EU supervisory bodies for effective supervision. (Art. 23)
4. Imposing Fines: PFSA canimpose fines for violations related to CASPs obligations. (Art. 60, Art. 62)
5. Revocation of Licenses and Prohibition of Services: PFSA can revoke licenses or prohibit crypto services for serious violations. (Art. 62)
6. Corrective Recommendations: PFSA can issue directives to certain token issuers that serve to rectify violations within a set timeframe. (Art. 45)
7. Enforcement Actions: PFSA can issue orders to stop non-compliance or violations, preventing future occurrences. (Art. 67)
8. Correcting Misleading Information: PFSA can correct false or misleading information disseminated to the public and require the issuing party to immediately rectify the information at their own expense. (Art. 57)
It's essential to remember that PFSA's specific powers apply to entities on which the MiCA Regulation imposes obligations related to operating as cryptocurrency service providers, the implementation of which requires follow-up supervision. ✅
