Fintech industry testing European financial system through regulatory loopholes

Zen.com is rapidly expanding across Europe while entering Ukrainian banking and supporting crypto transactions, testing the limits of financial regulation. As a Polish fintech, its growth highlights the global ambitions of Poland’s tech sector, but also exposes regulatory gaps affecting local oversight.

The firm operates under a Lithuanian EMI license, enabling cross-border services across the EU, while limiting the role of Poland’s regulator, Komisja Nadzoru Finansowego. Zen.com recently acquired a Ukrainian bank to bypass licensing barriers and strengthen cross-border payments.

At the same time, it faces regulatory pressure, including a EUR 1.8 mln fine for AML breaches, illustrating risks in the fragmented EU supervision system.

(wnp.pl)