The Sejm, the lower house of the Polish parliament, has supported a bill regulating cryptocurrency assets, which introduces significant fines for market participants and the possibility of imprisonment for up to two years for violations of the new rules. The maximum monetary penalty can reach 10 million zlotys (approximately $2.75 million).
This is reported by Finway
New Powers for the Financial Regulator
According to the adopted law, the Polish Financial Supervision Authority (KNF) receives expanded powers. From now on, the KNF will be able to issue licenses to cryptocurrency service providers (CASP), oversee the token issuance process, block suspicious domains of crypto services, and impose million-zloty fines for violations of the law. Additionally, cryptocurrency exchanges are required to keep client funds separate from their own assets.
Key violations that carry criminal liability or large fines include: operating without a license, issuing tokens without approved information documentation, or failing to meet reporting obligations.
Criticism from the Community and Support for the Reform
The document has sparked lively discussions among market participants. Many representatives of the crypto industry are concerned about the potential displacement of small companies and startups from the market, as they consider the new requirements excessive. In particular, experts point to the phenomenon of so-called “gold plating,” where national regulators add their own strict rules to the overarching European norms.
“The Polish Parliament has taken an important step by adopting the bill to implement the EU MiCA framework program and appointing the KNF as the supervisory authority, bringing clarity to the market that could potentially finally open doors for licensing applications. However, going beyond MiCA, the law risks undermining consistency within the EU and may stifle innovation.”
According to industry analysts, the KNF is gaining extensive powers to intervene in the activities of crypto businesses, which could negatively impact the sector’s development.
At the same time, supporters of the reform emphasize that the document will help organize the market and enhance investor protection. The explanatory note to the bill highlights that the main goal is to ensure effective oversight and compliance with consumer protection standards in accordance with EU Regulation 2023/1114.
Lawyer and founder of Kancelarii Prawnej Skarbiec, Robert Nogacki, called the adopted law a turning point for the digital asset market, stating that these changes are a necessary response to years of abuse and lack of regulation in the industry.
The Polish authorities are confident that the new legislation will serve as a foundation for the sustainable development of the crypto market and enhance security through expanded state oversight powers.
It is worth noting that trading of the first Bitcoin ETF recently began on the Warsaw Stock Exchange, which also indicates the development of the country’s crypto market.