Poland Advances Crypto Asset Market Act to Senate for Review
Poland's Sejm approves Crypto Asset Market Act aligned with EU MiCA, adding licensing, penalties and Senate review.
Poland’s lower house of parliament, the Sejm, has approved the Crypto Asset Market Act, marking a major step toward comprehensive regulation of the country’s cryptocurrency sector. The legislation, approved on Friday, now moves to the Senate for further evaluation. If passed, the law will overhaul the operations of crypto asset service providers (CASPs) in Poland by introducing stringent licensing and compliance requirements.
Licensing and Compliance to Align with EU Standards
The proposed legislation, referred to as Bill 1424, aims to implement a licensing framework for CASPs - such as crypto exchanges, issuers, and custodians - under the supervision of the Polish Financial Supervision Authority (KNF). This licensing model has been crafted to align Poland’s regulations with the European Union’s Markets in Crypto-Assets (MiCA) framework.
Under the new system, both domestic and foreign entities wishing to operate in Poland must acquire a license from the KNF. To secure approval, companies will be required to disclose their corporate structures, anti-money laundering (AML) policies, and operational practices. Firms that fail to meet these requirements will have six months to comply or cease operations.
The transitional period is designed to give providers time to adapt to the new standards while minimizing disruptions to the market. However, non-compliance after this grace period could result in severe consequences, including fines of up to 10 million Polish zlotys ($2.8 million) or imprisonment for up to two years.
Divisive Reactions to the Proposed Regulations
The Crypto Asset Market Act has sparked heated debate among industry stakeholders and lawmakers. Critics argue that the bill’s strict requirements and penalties could stifle innovation and force smaller providers out of the market. Some have expressed concerns that the complexity of the licensure process may deter companies from operating in Poland altogether, potentially undermining the country’s aspirations to become a key player in the digital finance sector.
Supporters of the legislation, however, emphasize the importance of regulatory oversight in safeguarding consumers and ensuring financial stability. Government officials have stated that aligning Poland’s crypto regulations with MiCA will reduce risks associated with money laundering and fraud while boosting institutional investor confidence. They also believe that adopting EU standards will position Poland as a secure and attractive environment for digital asset investments.
A Pivotal Moment for Poland’s Crypto Sector
If approved by the Senate, the Crypto Asset Market Act will be enforced by the KNF, requiring companies to navigate the new regulatory landscape quickly. The six-month transitional period is expected to test the capacity of Poland’s crypto industry to adapt to the new licensing and compliance demands.
This legislative move is part of a broader trend across Europe, where countries are aligning their national laws with the MiCA framework. The passage of this act could not only define Poland’s role in the EU’s digital asset market but also influence how other nations approach similar regulatory models.
As lawmakers in the Senate prepare to deliberate on the bill, the delicate balance between fostering industry growth and protecting investors remains at the forefront of the debate. The outcome will have lasting implications for Poland’s position in the evolving global crypto landscape.