Polish Authorities Issue Sweeping Condemnation of Bitcoin and Other Digital Currencies

Polish authorities, regulators, and banks issued a sweeping statement warning of the risk of bitcoin, ethereum, and other cryptocurrencies. They said these currencies are not national or legal tender and cannot be used to pay taxes. They do not fall within the guidelines provided by Polish Financial Supervision Authority. Businesses, especially, should be wary about adopting or trying to use “virtual currencies.” 

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The authority’s warning read, “Polish National Bank and Financial Supervision Commission report that “virtual currencies” are not issued or guaranteed by the central bank of the state, not money, ie. They are not legal tender, or currency, can not be used to pay off tax liabilities and do not meet the criterion of general acceptance in retail outlets”

The article, however, did mention that “virtual currencies” currently do not violate EU or national law. They just allegedly harbor a laundry list of risks, and people should recognize these risks before getting involved in the digital currency landscape.

Polish Authorities Outline Risks Involved with use of “Virtual Currencies”

The Polish authorities said that risk of theft is a huge problem in the space. This is especially the cause when an exchange is used to facilitate trade. “Virtual currencies” are not guaranteed by the bank either, since they are not bank deposits. The Polish authorities also said the currency is not “universally accepted” at retail outlets, and this makes it challenging to use and provides opportunities for being defrauded.

Lastly, the article said that these types of money may be nothing more than a “pyramid scheme.” In this regard, if an investor fell prey to this kind of scheme, the only kind of “protection would be criminal,” read the article. There is allegedly no legal institution that has an obligation to protect investors from this kind of dupe.

Authorities: Do Not Invest in Cryptocurrencies; Polish Bitcoin Usage

The Polish authorities say it would not be a wise investment to purchase these assets given their risk assessment. They are against using exchanges to purchase, manage, or otherwise be involved in bitcoin and other cryptocurrencies. The site even said it would be risky if investors were regulated and added:

The Polish National Bank and Financial Supervision Commission considers that buying, owning and selling “currency” of virtual entities supervised by the financial Supervision Commission would be high risk and would not provide a stable and prudent management of the financial institution.

This warning comes as more Polish restaurants and eateries have begun to accept bitcoin as a method of payment. Poland’s largest food delivery service, with 5000+ restaurants, recently started accepting the digital currency. It will be interesting to see how the general public and investors react to recent condemnations of bitcoin and other digital currencies.

What do you think about this statement from Polish regulators and bankers?  Let us know in the comments below.

Images via Shutterstock 

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