Crypto businesses in Poland brace for impact as new bill looms

The authorities in Poland are working on a bill to finally regulate the nation’s crypto market, the largest in Central and Eastern Europe, in accordance with the latest EU rules.

While regulatory clarity may attract major players in the industry, the local crypto community fears that some provisions suggested by Polish politicians threaten the survival of smaller domestic companies.

Polish government renews push to regulate crypto

Poles may have been frustrated by delayed efforts to regulate the crypto space in their country, but what’s in store for them now does not necessarily bring a change for the better, Polish crypto media has noted.

The government in Warsaw approved a draft law prepared by the finance ministry, the basic purpose of which is to implement the European Union’s Markets in Crypto Assets (MiCA) package in Poland, the Bitcoin.pl portal reported.

But that’s not all. Certain texts added by local politicians are making Polish crypto companies think about moving abroad, the news outlet warned.

If adopted, the legislation will assign regulatory oversight to Poland’s Financial Supervision Authority (KNF), which is not particularly popular among members of the country’s crypto industry.

The agency will be tasked to control the operations of platforms such as cryptocurrency exchanges and token issuers, which will be required to share detailed information about their activities.

The KNF will also be entitled to impose heavy fines on crypto firms, which can reach 22 million złoty annually (over $6 million). The penalties are harsher than those for banks, the report points out.

According to the FinTech Poland Foundation for Financial Innovation, the regulations contain overly rigorous provisions regarding reporting obligations and supervisory powers.

Bill raises entry barriers for crypto startups

Poland is obliged to apply the rules introduced by the MiCA law, which seeks to unify regulatory frameworks across the EU. However, many Poles are concerned that the rules proposed by their own government, which the industry describes as “draconian,” go too far.

Besides exaggerated regulatory scrutiny, it also includes higher entry barriers for new crypto businesses. Obtaining a crypto asset service provider (CASP) license will cost about half a million zlotys, noted Polish economist Prof. Krzysztof Piech.

“Then 30 – 40,000 zlotys of monthly costs, in addition to which you have to prepare about 1,000 pages of documentation and wait two years for the regulator’s decision,” he told the leading Polish daily Gazeta Wyborcza, adding:

“From my conversations with entities in the market, everyone will try to obtain a license abroad. It is therefore possible that the Polish act will not cover any entity, except for those already regulated.”

The comments of the academic, who specializes in finance, were quoted in an article titled “Government Grabs Bitcoin by the Throat.” The same report revealed that Poland’s president-elect Karol Nawrocki, who will assume office in August, intends to veto the law, which, in his view, proposes “murderous” solutions.

The Sejm and the Senate, the upper and lower house of Polish parliament, are likely to adopt the bill. If Nawrocki makes good on his promise not to sign it in its current form, attempts to regulate the crypto space in Poland are expected to continue.

“I notice that more and more people and companies are investing in cryptocurrencies. What is my attitude to this? Innovations must be created in Poland, not regulations,” Nawrocki was quoted as stating during the election campaign.

“As the president of the Republic of Poland, I will guarantee that the murderous regulations that will limit your freedom will not be implemented,” he insisted in a post on X at the end of May.

🟦 Zauważam, że coraz więcej osób i firm inwestuje w kryptowaluty. Jaki jest mój stosunek do tego? W Polsce muszą powstawać innowacje, a nie regulacje. Jako Prezydent RP, będę gwarantem, że nie wejdą w życie zamordystyczne przepisy, które ograniczą Waszą wolność. #Nawrocki2025 pic.twitter.com/pHoJ03Gg3K

— #Nawrocki2025 (@Nawrocki25) May 28, 2025

While the upcoming regulatory clarity may attract major industry players that can afford the high costs of licensing, smaller crypto firms will have to either leave Poland or continue to operate there via registration in another jurisdiction.

“This will happen at the expense of the state budget. It is hard to understand the logic of the legislator,” the crypto news outlet noted.

A previously discussed controversial proposal envisaged imposing a 0.5% fee on the revenues of Polish crypto exchanges while charging foreign-based platforms only a one-time fee of around $5,000.