Poland is on the verge of implementing one of the strictest cryptocurrency laws in Europe, drawing sharp criticism from industry leaders and sparking a heated political debate. This legislation, seen as an extension of the European Union’s Markets in Crypto-Assets (MiCA) framework, aims to bolster investor protection but raises concerns about stifling innovation and driving businesses abroad.
Strict Regulatory Framework
On September 26, the Polish lower house of parliament, the Diet, passed the Crypto-Assets Market Bill (Bill 1424) with a vote of 230 in favor, 196 against, and no abstentions. The bill now moves to the Senate for further consideration. If enacted, it would position Poland as one of the EU’s most tightly regulated jurisdictions regarding cryptocurrency.
Under this new framework, the Polish Financial Supervisory Authority (KNF) will be the chief regulator for all crypto service providers, including exchanges, issuers, and custodians, regardless of their nationality. Operators will need to obtain an KNF license, demonstrating strong capital reserves, robust compliance systems, comprehensive risk management protocols, and anti-money laundering procedures.
A six-month transition period will allow businesses to adapt to the new regulations, but violations could lead to fines of up to 10 million zlotys (approximately $2.8 million) or prison sentences of up to two years.
Proponents of the legislation, led by Civic Coalition Rapporteur Krystyna Skowrońska, argue that it is essential for protecting investors, stabilizing Poland’s burgeoning digital asset market, and ensuring alignment with EU standards. They believe it will legitimize a sector often criticized for its opacity while shielding Poland from systemic financial risks.
Industry Concerns Over Migration
However, critics caution that Poland’s approach far exceeds what the EU’s MiCA regulation requires. Przemysław Kral, CEO of the European crypto platform Zondacrypto, described the legislation as a “significant step back,” asserting that it treats cryptocurrency as a threat rather than an opportunity.
Kral emphasized that the new rules could criminalize fundamental activities like smart contract development, dissuade talent and investment from the country. Industry insiders fear that the strict licensing and regulatory requirements, combined with the KNF’s notoriously slow approval process—averaging 30 months—may drive startups and smaller operators abroad.
He shared Zondacrypto’s experience: despite being founded in Poland, the company is regulated in Estonia, where it pays over 6 million euros in VAT annually. Such relocations could deprive Poland of jobs, tax revenues, and the chance to foster a vibrant digital economy.
Bitcoin advocate Dominik Fel echoed these concerns, warning that Poland risks becoming a “museum of innovation” if the law takes effect. Opposition politicians, including Confederation MP Krzysztof Rzońca, have urged President Karol Nawrocki to veto the bill, arguing it could dismantle the national cryptocurrency market.
Political Divide Shapes the Debate
The vote highlighted significant political divisions. The Civic Coalition, Poland 2050-TD, PSL-TD, Left, and Together supported the law, while the Law and Justice party (PiS), Confederation, and Republicans opposed it. The PiS has announced its intention to develop a lighter alternative modeled after other EU frameworks, which it plans to present at its congress at the end of October.
Analysts suggest that President Nawrocki’s decision will be vital for Poland’s future in the digital assets sector. Although he does not personally hold cryptocurrency, libertarian and pro-Bitcoin groups that supported his election are advocating for a more lenient regulatory approach.
The president’s choice could determine whether Poland positions itself as a leader in prudent yet investor-friendly regulation or risks stifling innovation and losing its emerging digital economy to more favorable jurisdictions.
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