The Polish Parliament has approved a new cryptocurrency law that goes beyond EU requirements, triggering heated debate in the sector.
The Sejm, Poland’s lower house of parliament, passed legislation to regulate the country’s digital asset market in line with the EU’s latest directives. While the law implements the MiCA (Markets in Crypto Assets) regulation domestically, critics argue it goes far beyond Brussels’ requirements.
On September 26, 230 lawmakers voted in favor and 196 against, with no abstentions. The bill now moves to the Senate for final review. The government says its aim is to protect investors and market participants from what it calls “dishonest entities.”
KNF oversight and penalties
The law grants Poland’s Financial Supervision Authority (KNF) sweeping powers over the digital asset sector, including the ability to track violations and fraudulent activities.
All crypto asset service providers (CASPs) — including exchanges, issuers, and custodians, both domestic and foreign — will be required to obtain a license from the KNF to operate in Poland.
To secure authorization, CASPs must submit a detailed application outlining corporate structure, capital adequacy, internal controls and compliance systems, risk management policies, and Anti-Money Laundering (AML) procedures.
The bill also introduces criminal liability for specific offenses, such as providing crypto services or issuing tokens without authorization. Penalties include fines of up to 10 million Polish złoty (around $2.8 million) and prison terms of up to two years for the most serious violations.
Market and investments
According to official statistics released this year, 18% of Polish citizens have already invested in digital assets, making Poland one of the leading crypto markets in Central and Eastern Europe.
In July, Deputy Finance Minister Jurand Drop defended the new rules, stressing their importance in strengthening investor protection. He pointed out the lack of effective mechanisms to combat fraud, noting that “20% of investors in this market report having been victims of some type of fraud or abuse.”
Criticism of the law
Despite the government’s stated intentions, the legislation has drawn criticism from both the political opposition and Poland’s crypto community. Industry outlet Bitcoin.pl called the law a “real horror” for entrepreneurs.
The main concerns focus on the extensive powers granted to the KNF, which industry players say resemble more of a “repressive apparatus” than a standard regulator. They warn that the imposed fees could “simply bankrupt smaller companies,” while so-called “clear guidelines” in practice translate into costly restrictions that risk stifling innovation.
The law’s impact may already be visible through an exodus of firms from Poland. XTB, one of the country’s largest brokers, has hinted at applying for a license in Cyprus to escape the stricter domestic framework.
