- Poland’s Sejm has passed the Crypto-Asset Market Act, sending it to the Senate for review.
- The bill requires all CASPs to obtain licenses from the KNF, with fines up to 10 million zlotys and potential prison terms for non-compliance.
- Critics argue the law could hinder innovation and threaten Poland’s crypto market, while President Nawrocki has pledged to support crypto development.
Poland’s Crypto-Asset Market Act has cleared the lower house of parliament, the Sejm, and now awaits consideration by the Senate. The bill, aimed at regulating the crypto sector, has triggered criticism over strict licensing rules, hefty fines, and potential prison sentences for violations.
The legislation introduces key limitations on crypto businesses and establishes a dedicated supervisory authority to oversee compliance. Its approval marks a significant step in aligning Poland’s crypto framework with the European Union’s Markets in Crypto-Assets (MiCA) regulations.
Bill imposes licensing requirements and criminal penalties
Bill 1424 requires all crypto asset service providers (CASPs), including exchanges, issuers, and custody services, to obtain a license from Poland’s financial supervision authority, the Komisja Nadzoru Finansowego (KNF). This applies to both domestic and foreign entities operating in the country.
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CASPs must submit detailed applications covering corporate structure, capital adequacy, internal controls, risk management, compliance systems, and anti-money laundering (AML) procedures. Once enacted, the legislation provides a six-month transition period for providers to secure their licenses. Failure to comply could result in business closure and legal consequences, including fines up to 10 million Polish zlotys ($2.8 million) and prison terms of up to two years.
Critics warn the law could harm Poland’s crypto market
The Sejm approved the bill with 230 votes in favor and 196 against, prompting backlash from the crypto industry and some lawmakers. Janusz Kowalski, a Sejm member from the opposition Law and Justice (PiS) party, described the law as overly restrictive and potentially harmful to Poland’s three million crypto holders.
This is the largest and most restrictive cryptocurrency law in the EU, Kowalski wrote on X, noting that the 118-page legislation is far longer than comparable regulations in Germany, the Czech Republic, and other EU states.
Tomasz Mentzen, a politician and blockchain advocate, criticized the KNF’s slow regulatory processes, warning that the bill could stifle blockchain and stablecoin activity in Poland. He urged the Senate and President Karol Nawrocki to intervene and block the law.
Poland’s president signals support for crypto
President Nawrocki, who took office on June 1 after defeating Rafał Trzaskowski in the runoff, has expressed support for crypto innovation. Ahead of the election, he promised to oppose “tyrannical regulations” that restrict freedom and technological development.
In Poland, innovations must emerge, not regulations. As President of the Republic of Poland, I will be the guarantor that tyrannical regulations restricting your freedom do not come into effect.
