The Polish Sejm has approved a new bill regulating crypto assets, which includes significant fines for market participants — up to 10 million zlotys (approximately $2.75 million), as well as the possibility of imprisonment for up to two years for violations of the new requirements.
This is reported by Business • Media
Main Provisions of the Law and New Powers for the Regulator
The document implements EU rules (MiCA) and expands the powers of the Polish Financial Supervision Authority (KNF). The KNF is now granted the authority to license crypto service providers (CASPs), oversee token issuance, block suspicious domains of crypto services, and impose financial sanctions. Additionally, exchanges will be required to keep client funds separate from their own assets.
Among the violations that carry penalties are operating in the cryptocurrency market without the appropriate license, issuing tokens without an approved information document, or failing to meet reporting obligations. Offenders may face million-zloty fines or imprisonment.
Market and Public Reaction
The new law has faced harsh criticism from members of the crypto community, who note that increased regulation could lead to the disappearance of small businesses from the market. Specifically, it is believed that under such conditions, only large players will survive, while small companies and startups will either have to leave Poland or cease operations.
“The Polish Parliament has taken an important step by passing the bill to implement the EU MiCA framework and designating the KNF as the supervisory authority, providing clarity to the market that could potentially open the door for licensing applications. However, going beyond MiCA, the law risks undermining consistency within the EU and may stifle innovation.”
The community is also discussing the risks of excessive “gold plating” — when national regulators impose stricter requirements compared to European norms. Crypto analysts warn that the KNF is receiving overly broad powers, including the ability to swiftly block company operations without lengthy procedures.
At the same time, supporters of the law emphasize its importance for regulating the market and protecting investors. The explanatory note to the document states that its aim is to ensure effective supervision and protect the interests of market participants by establishing uniform standards in accordance with EU Regulation 2023/1114.
Lawyers emphasize that this marks the end of the “Wild West” era in the field of crypto assets, and the new regulation is a long-awaited response to numerous abuses of past years. The Polish authorities believe that the new rules will contribute to the long-term development of the market and enhance security levels by strengthening the supervisory functions of the KNF.
It is worth noting that recently the first Bitcoin ETF was launched in Poland, which is already trading on the Warsaw Stock Exchange.