- Crypto service providers to face stricter licensing, compliance, and penalty rules under the Crypto-Asset Market Act in Poland.
- Lawmakers split on Poland’s crypto bill as critics label it the EU’s most restrictive cryptocurrency regulation.
Lawmakers in Poland have passed the Crypto-Asset Market Act (Bill 1424) that introduces a comprehensive licensing regime for Crypto Asset Services Providers (CASPs). The bill aligns the national rules with the EU’s Markets in Crypto-Assets Regulation (MiCA).
The Crypto-Asset Market Act designates Komisja Nadzoru Finansowego (KNF), Poland’s financial supervisory authority, as the regulator overseeing exchanges, custody providers, and issuers.
To secure a license, CASPs will need to disclose details on corporate structure, capital adequacy, compliance system, risk management, and Anti-Money Laundering (AML) procedures. The Bill also establishes criminal penalties for violation, with fines up to 10 million zlotys ($2.8 million) and prison terms of up to two years.
While the bill now awaits the Senate review for potential approval, if enacted, companies will have 6 months to meet the licensing requirements or risk shutdown and legal consequences.
See Related: Hong Kong Launches Stablecoin Regime, Limits Licenses To A Select Few
Crypto Crossroads: Support Or Strangulation?
Beyond the penalties, Poland’s new Crypto-Asset Market Act has sparked concerns about its impact on the market. While the bill received 230 votes in favor and 196 against, critics warn that the strict licensing could harm Poland’s cryptocurrency market.
Tomasz Mentzen, a blockchain advocate and politician, warns that this bill could destroy blockchain and stablecoins in Poland. The penalties have also raised concerns within Poland’s crypto community about potential harm to innovation and competitiveness.
Janusz Kowalski, a Polish politician serving as a member of the Sejm, also shared in a statement on his X account, “This is the largest and most restrictive cryptocurrency law in the EU.”
He argues that the 118-page bill represents an overregulation when compared to other European countries. The senate review will determine whether the proposed framework becomes a law, shaping the future of Poland’s cryptocurrency market.
