Poland approves Crypto Asset Market Act, aligning with EU MiCA rules, introducing strict licensing, penalties, and Senate review for final approval.
Poland’s lower house of parliament, the Sejm, has approved the Crypto Asset Market Act, setting the foundation for strict oversight of the nation’s crypto sector. The bill, which was approved Friday, will now be sent to the Senate and evaluated. If adopted, the law will fundamentally alter the way in which crypto asset service providers (CASPs) operate in Poland, regulating CASPs through licensing requirements, penalties and monetary supervision by the country’s financial regulator.
Sejm Approves Licensing Regime for Crypto Service Providers
Bill 1424 imposes a licensing mechanism that would align Poland with MiCA of the European Union. Under the new system, the CASPs such as exchange, issuer, and custodian, need to acquire a license from the Polish Financial Supervision Authority (KNF). The licensing process will involve companies revealing their corporate structures, AML policies and operational transparency before being granted approval.
The Act requires both domestic and foreign entities to obtain licenses to operate in Poland. Moreover, firms that fail to comply will have six months to meet the requirements or stop offering services. During this transition period, providers can adjust their operations. In addition, the timeline aims to help businesses meet the new standards without immediate disruption.
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Also, the act creates criminal liability for violations. Offending companies and individuals may be punished with up to 10 million Polish zlotys ($2.8 million) or imprisonment for up to two years. These rigid regulations are designed to protect consumers, but they have given rise to serious apprehensions in critics from within the industry.
New Law Sparks Debate Over Penalties and Market Impact
Critics say: The new license system is too restrictive and this may discourage innovation in the Polish crypto market. Some legislators warn that the law’s long and complicated licensure process will force some smaller providers out of business. Further, some opponents caution that harsher fines to discourage companies from choosing to operate in Poland would dilute Poland’s role as an up-and-coming destination for digital finance.
Supporters of the act, however, argue that it needs to be more closely regulated. The government emphasized that MiCA alignment will ensure investor protection and maintain financial stability. Officials said the framework will reduce money laundering and fraud risks. They explained that adopting EU standards will strengthen Poland’s regulatory process. By doing so, Poland can build more confidence among institutional investors and attract greater participation.
If the bill is approved by the Senate, it will be enforced by the KNF, and the legislation will provide for licensing and compliance. Over the six-month transitional period, companies will have to push to get authorized in time to prevent closure of operations. The implementation will challenge the capacity of the Polish crypto sector for a quick response to the new regulatory reality.
The move by Poland is part of a general tendency among countries throughout Europe to adapt national legislation to MiCA. This legislation will define Poland’s position in the EU digital asset market. It may also influence how other states adopt similar models. The Senate must now review the bill. Lawmakers are again debating how to balance investor protection with industry growth.
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