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January 27, 2021
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The KNF issued a message: watch out for cryptocurrencies! –

Polish Financial Supervision Authority (KNF) published On January 12, 2021, a message warns against investing in cryptocurrencies. Will this scare investors from buying Bitcoin?

KNF: watch out for cryptocurrencies!

Today the BTC rate is correcting on the market. There are many indications, however, that the increases will continue. It was in such circumstances that officials from the KNF decided to take the floor.

The Commission is taking note to currently be careful about companies that may want to use the cryptocurrency hype to sell their services:

At the same time, in such circumstances, entities that often under the so-called aggressive marketing (containing incomplete or insufficient information to assess the risk) offer the possibility of investing in assets such as, for example, broadly understood cryptoactivities, including virtual currencies. Knowledge and awareness of the risk associated with such forms of investment are then of key importance for the security of invested funds. The Office of the Polish Financial Supervision Authority (UKNF) reminds potential investors about the risks associated with the acquisition and trading of broadly understood crypto assets, including virtual currencies. “

The exchange rate volatility is also expected to be a threat:

“The cryptocurrency and crypto-assets market is characterized by high volatility. An example is the valuation of the most popular bitcoin cryptocurrency (BTC), which, according to the www.coindesk.com portal, on January 26, 2017, cost around 900 US dollars, on December 17, 2017, it cost around 19,160 US dollars. Less than a year later, on December 14, 2018, one BTC cost around US $ 3,200 for a year, losing almost US $ 16,000. This means an increase in value by approximately 2,128% over the year and then a decrease in value by approximately 81% over the year. ”

I prefer cryptocurrency to deposit!

The Polish Financial Supervision Authority believes that the phenomenon of cryptocurrencies comes from the fact that today keeping money in a deposit is not – to put it mildly – too profitable. Officials believe, however, that the opportunities offered by investing in BTC must not obscure the fact that cryptocurrencies are an unregulated market. The problem is, it’s not entirely true. It is worth recalling that the regulations result from the AML directive or tax interpretations or the KNF itself.

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