Poland’s lower house of parliament, the Sejm, has approved the Crypto-Asset Market Act, a measure that seeks to align national rules with the European Union’s MiCA regulations while imposing significant obligations oncrypto businesses.
The act requires all crypto-asset service providers – exchanges, issuers and custodians, both Polish and international – to apply for a licence from the financial supervisor, the Komisja Nadzoru Finansowego (KNF). Applications must demonstrate adequate capital, corporate governance, compliance structures, anti-money laundering procedures and risk management frameworks.
Once enacted, companies will be granted six months to obtain approval. Without it, operations could be forced to shut down, with penalties extending to fines of up to 10 million zlotys, equivalent to AU$4.26 million, and prison sentences lasting up to two years.
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The measure passed the Sejm with 230 members supporting it and 196 against. Lawmaker Janusz Kowalski criticised the act as overly restrictive and the lengthiest crypto law in the EU, arguing that its 118 pages dwarf the shorter legislation adopted by other member states such as Germany and the Czech Republic. He also warned it could affect Poland’s estimated three million crypto investors.
Blockchain advocate Tomasz Mentzen added that the KNF’s lengthy 30-month average for processing applications could paralyse the sector, saying such inefficiency risked “destruction” of blockchain and stablecoins in the country.
The bill now moves to the Senate, after which it will require the signature of President Karol Nawrocki. Nawrocki publicly committed to supporting crypto innovation during his election campaign earlier this year.
As President of the Republic of Poland, I will be the guarantor that tyrannical regulations restricting your freedom do not come into effect.
Karol Nawrocki, President of Poland Related: Pavel Durov Says France Pressured Telegram to Censor Moldovan Political Channels
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