The Polish Sejm has passed a bill on the crypto asset market, which sets new rules for service providers and transfers supervision of the industry to the financial regulator Komisja Nadzoru Finansowego (KNF). The document aligns with the European MiCA regulatory framework but has faced sharp criticism from the industry and some lawmakers.
The law provides for fines and prison sentences for violations, as well as a six-month transition period for obtaining licenses.
Key Provisions of the Law
Bill No. 1424 requires all crypto services, including exchanges, issuers, and custodial companies, to obtain a license from the KNF. This requirement also applies to foreign companies operating in Poland.
To obtain a license, crypto services must submit a full dossier, including information on corporate structure, capital, internal control and compliance systems, risk management policies, and anti-money laundering procedures.
Violations will be punishable by fines of up to 10 million zloty ($2.8 mln) and imprisonment for up to two years.
If the law comes into force, companies will have six months to obtain a license. Otherwise, they will be forced to cease operations in Poland and may face legal consequences.
Reaction
The law received 230 votes in favor and 196 against, reflecting a split in parliament. Representative of the opposition Law and Justice party Janusz Kowalski criticized the document, stating that it is excessively strict and threatens the crypto market and the three million Polish holders of digital assets.
Politician and blockchain supporter Tomasz Mentzen also warned of risks for the industry, noting the slowness of Polish regulators in implementing legislation.
Sławomir Mentzen, Tomasz’s brother and one of the candidates in Poland’s 2025 presidential election, called the bill harmful and urged it to be vetoed. He believes the document could destroy the cryptocurrency market in the country.
Opponents of the law remind that President Karol Nawrocki, who won the election in June with 50,9%, had promised before the vote to defend the crypto market from “tyrannical norms” that limit freedom and innovation.
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