Polish authorities are working on a bill that will ultimately regulate the crypto markets of the largest countries in Central and Eastern Europe in accordance with the latest EU regulations.
While clarity of regulations could attract key players in the industry, local crypto communities fear that some provisions proposed by Polish politicians will threaten the survival of small domestic businesses.
Polish government updates push to regulate cryptography
Poles may be unhappy with the late efforts to regulate their country’s crypto space, but what is now prepared for them doesn’t necessarily make a difference for the better, Polish crypto media points out.
The Warsaw government has approved a bill written by the Ministry of Finance. Its fundamental purpose is to implement the European Union Market (MICA) package in Poland.
But that’s not all. Certain texts added by local politicians have made Polish crypto companies think about moving abroad, the news outlet warned.
If adopted, the Act assigns regulatory oversight to the Polish Financial Supervisory Authority (KNF).
Agents are entrusted with managing the operations of platforms such as cryptocurrency exchanges and token issuers. This requires sharing detailed information about the activity.
KNF is also entitled to heavy fines on crypto companies that could reach 22 million Zwarty (over $6 million) each year. The penalties are stricter than the bank’s penalties, according to the report.
According to the Fintech Poland Foundation for Financial Innovation, the regulations contain excessively strict regulations regarding reporting obligations and supervisory capabilities.
Bill causes entry barriers for crypto startups
Poland is obligated to apply the rules introduced by the MICA Act, which seeks to unify the EU-wide regulatory framework. However, many Poles are concerned that rules proposed by their own government, which the industry describes as “radical” are overreached.
In addition to exaggerated regulations scrutiny, it also includes higher barriers to entry for new crypto businesses. Obtaining a Crypto Asset Service Provider (CASP) license costs around 500,000 Zlotys.
“We then have to prepare a document of about 1,000 pages, plus a monthly cost of 30-40,000 Zlotys, and wait two years for the regulatory decision,” he told the daily Gazeta Wyborcza in Poland, adding:
“From conversations with entities in the market, everyone tries to obtain a license overseas. Therefore, Polish law may not cover any entities except for those already regulated.”
Comments from the financial expert academic were quoted in an article entitled “The government grabs bitcoin from the throat.” According to the same report, Polish presidential election Karol Naurokki, who is expected to take office in August, is expected to reject the law, and in his view he proposes a “murderous” solution.
The SEJM and the Senate, the Polish Parliament’s Senate and House of Representatives are likely to adopt the bill. If Nawrocki is doing good with his promise not to sign in its current form, attempts to regulate Polish crypto space are expected to continue.
“I’m finding that more and more people and businesses are investing in cryptocurrency. What is my attitude towards this? Innovation must be created in Poland, not regulations,” quoted Nowrocky as saying during his campaign.
“As the president of the Republic of Poland, I guarantee that no murder restrictions will be implemented that limit your freedom,” he argued in a post in X at the end of May.
Dear, but I’ve noticed that more and more people and businesses are investing in cryptocurrency. What is my attitude towards this? Innovations need to occur in Poland, not regulations. As president of the Republic of Poland, I assure you that the murdered regulations that limit your freedom will not be enforced. #nawrocki2025 pic.twitter.com/phoj03gg3k
– #nawrocki2025 (@nawrocki25) May 28, 2025
Future regulatory clarity could attract major industry players who could supply high licensing costs, but smaller crypto companies will have to leave Poland or continue to operate there via registration in another jurisdiction.
“This happens at the expense of state budgets. It’s difficult to understand lawmakers’ logic,” Crypto News said.
A previously debated controversial proposal assumes a fee of 0.5% on the revenues of Polish crypto exchanges, but it charged a one-time fee of around $5,000 for the foreign-based platform.
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