Poland’s New Cryptocurrency Legislation
In a significant move, Polish legislators have green-lit a new bill aimed at establishing stringent regulations for the cryptocurrency market in the country. This legislation, known as the Crypto-Asset Market Act, was approved by the Sejm, Poland’s lower house of parliament, and is now set to be reviewed by the Senate after the vote on Friday, which saw support from 230 members against 196 in opposition.
Alignment with EU Regulations
The proposed bill aligns Poland’s regulatory framework with the European Union’s Markets in Crypto-Assets Regulation (MiCA), introducing a comprehensive licensing system for crypto asset service providers (CASPs). These providers range from exchanges to issuers and custodians, and will now be required to obtain a license from the Komisja Nadzoru Finansowego (KNF), the country’s financial supervisory authority. To apply for the license, CASPs must provide detailed information about their corporate structures, capital reserves, internal controls, compliance systems, risk management protocols, and anti-money laundering measures.
Concerns and Criticism
The latest bill has sparked significant concern within the crypto community due to several contentious stipulations. Among these is the imposition of criminal penalties for violations, which could incur hefty fines of up to 10 million Polish zlotys (around $2.8 million) and potentially lead to prison sentences of up to two years for non-compliance.
Janusz Kowalski, an opposition lawmaker from the Law and Justice (PiS) party, sharply criticized the stringent nature of the bill, claiming it is the most limiting cryptocurrency legislation in the EU, and contrasting its 118 pages of regulations to the much simpler frameworks of other European nations like Germany and the Czech Republic.
Concerns surrounding regulatory delays were also raised, with Tomasz Mentzen, a politician and blockchain enthusiast, noting the KNF’s notoriously slow processing times, averaging about 30 months for applications. He warned that the new law could stifle the growth of blockchain technology and stablecoins in Poland and called for intervention from the Senate and President Karol Nawrocki to prevent potential harm to the crypto sector.
Presidential Support for Innovation
President Nawrocki, who won the presidency with a promise to support crypto innovations and oppose oppressive regulations, affirmed his commitment to fostering an environment conducive to growth and technological advancement. This sentiment resonates with many in the crypto space who are keen to see Poland embrace rather than inhibit innovation in digital currencies.
Future of Crypto in Poland
As the bill proceeds to the Senate, the debate around its implications continues, with proponents highlighting the need for regulation to protect users and critics warning that overregulation could drive innovation out of the country altogether. The path forward for crypto in Poland remains uncertain, hinging on the actions of the Senate and the President in the coming weeks.
