Most Crypto Exchanges in Poland could be closed for MICA

Analysts warn that markets under European Crypto Assets (MICA) rules, along with national regulations, threaten the survival of most Polish cryptocurrency exchanges.

Global players have already adapted to the change, which requires serious investments in legal and technical capabilities, but Poland’s small domestic platform feels compliance costs are prohibitive.

MICA may go out of business from Poland

One of the largest in Central and Eastern Europe, Poland’s cryptocurrency market is preparing for an unprecedented transformation that could seriously affect local businesses.

90% of domestic cryptocurrency exchanges could also cease operations by the end of 2025, Crypto News Outlet warned, citing industry watchers.

The website predicted that MICA, the general regulatory framework for crypto assets in the European Union, and “astronomical costs to comply with new requirements, including Polish requirements, would create a “wave of closures” in the sector.

Under EU regulations, providers of crypto-related services across the block are currently obligated to comply with strict uniform rules, but the associated costs may vary significantly from member state to member state.

Obtaining a license in Poland costs applicants between 1.5 million and 3 million Polish Zwarty (approximately $400,000 to $800,000), which is not even a full bill yet.

Crypto companies also need to raise at least 500,000 euros (over $580,000) in the form of initial capital and implement sophisticated compliance and reporting systems, the report highlights.

These requirements cannot be met at small and medium-sized crypto exchange offices previously operated in fringes in the financial market, the author argued. The owner of one such office in Warsaw asked not to name it.

“This is a death sentence for local players. They can’t afford millions of zlotys for their licenses and the army of lawyers.”

Large players could benefit in both Poland and the EU

At the same time, large international players in the crypto trading field, as well as players funded by foreign capital, are well suited to survive future regulatory changes.

Global platforms such as Binance and Coinbase are already adapting to new MICA regulations that will ensure investments in legal and technical teams, Bitcoin.pl said.

Additionally, investors will protect their interests and funds more strongly under the careful eyes of the Polish Financial Supervisory Authority (KNF), but market integration certainly brings less competition and higher fees, if not limited to access to services.

In fact, this is a pan-European trend, with similar developments in major EU economies such as Germany and France, with small market participants going out of business, while Poland’s lack of clear regulations exacerbates the process.

Polish lawmakers are currently discussing a controversial bill that has been criticized by the local crypto community for exceeding MICA standards. The bill, introduced by the government in early July, was recently passed by the SEJM in its first reading.

A dedicated committee is currently being established in the House to oversee regulatory efforts. The Cryptocurrency Task Force consists of members of various political parties and Deputy Ministers responsible for digital issues and technology development.

Avoiding and reducing fee burdens for entities engaged in industry entities is one of its main goals, along with removing barriers to cryptocurrency investment and attracting crypto capital to countries that lead to larger budget receipts.

In any case, Poland’s “Crypto Wild West,” where many companies operate in the Shadow Economy, appears to be coming to an end. The MICA compliance transition period is set to expire at the end of December, when Polish crypto platforms must decide whether to stay or leave.

And not everything sees it as negative. “This is not the end… we will finally be able to compete with traditional financial institutions on an equal footing,” argued the representatives of the major Polish exchange, which are planning to stay within the country.