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Poland’s new crypto law imposes strict KNF licensing and heavy penalties. Industry warns rules could stifle innovation and push firms abroad. The president’s decision may determine Poland’s crypto market future. Poland has moved closer to enacting one of Europe’s strictest cryptocurrency laws, drawing sharp criticism from industry leaders and sparking a heated political debate. The legislation, framed as an interpretation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, aims to strengthen oversight and protect investors but has raised concerns that it could stifle innovation and drive businesses abroad. Stricter rules take centre stage The Polish lower house, the Sejm, approved the Crypto-Asset Market Act (Bill 1424) on September 26, with 230 votes in favour, 196 against, and no abstentions. The bill now awaits review by the Senate. If passed, it would position Poland as a jurisdiction with one of the most tightly regulated crypto markets in the EU. Under the new framework, the Polish Financial Supervision Authority (KNF) will serve as the primary regulator for all crypto-asset service providers, including exchanges, issuers, and custodians, whether domestic or foreign. Operators will need to secure a KNF license and demonstrate strong capital reserves, robust compliance systems, risk management protocols, and anti-money laundering procedures. A six-month transition period will allow companies to align with the new rules, but violations could result in fines of up to 10 million zlotys ($2.8 million) or prison sentences of up to two years. Supporters of the legislation, led by Civic Coalition rapporteur Krystyna Skowrońska, argue that the law is necessary to protect investors, stabilise the rapidly growing digital asset market, and ensure alignment with EU standards. Proponents say it will bring legitimacy to a sector often criticised for opacity while shielding Poland from systemic financial risks. Industry voices warn of exodus Critics, however, warn that Poland’s…

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Filed under: News - @ September 30, 2025 7:26 pm