New Crypto-Asset Market Act Could Reshape Poland’s Digital Asset Industry
Poland has taken a major step toward regulating its digital asset industry after the Sejm (lower house of parliament) approved the Crypto-Asset Market Act (Bill 1424) on Friday. The bill now moves to the Senate for review, but it has already triggered significant backlash from crypto holders, lawmakers, and industry advocates.
Licensing, Heavy Fines, and Prison Terms
The legislation introduces a mandatory licensing framework for crypto asset service providers (CASPs), including exchanges, issuers, and custody platforms. Oversight will fall under the Polish Financial Supervision Authority (KNF).
To obtain a license, CASPs must prove compliance with capital adequacy standards, internal controls, risk management systems, and Anti-Money Laundering (AML) rules.
Violations carry heavy consequences:
- Fines up to 10 million PLN ($2.8 million)
- Prison sentences of up to two years
- Possible shutdowns for unlicensed firms
If enacted, CASPs will have a six-month transitional period to secure their licenses.
Critics Warn of Market “Destruction”
The bill passed with 230 votes in favor and 196 against, reflecting deep political division.
Opposition lawmaker Janusz Kowalski blasted the legislation as “the largest and most restrictive cryptocurrency law in the EU”, warning it could devastate Poland’s market of over three million crypto holders. He criticized the text’s 118 pages of regulations, contrasting it with shorter, less restrictive laws in Germany and the Czech Republic.
Meanwhile, blockchain advocate Tomasz Mentzen highlighted Poland’s slow bureaucracy, noting that the KNF takes an average of 30 months to process applications — a delay that could choke innovation. He argued the bill signals the “destruction of blockchain and stablecoins” in Poland unless vetoed by the Senate or President.
Political Promises vs. Regulatory Reality
Polish President Karol Nawrocki, elected in June 2025, had pledged to support crypto and resist “tyrannical regulations” before taking office. His position on the new bill will be closely watched, as veto power remains a key check on its enforcement.
His campaign rival, Sławomir Mentzen, had gone even further, promising to build a national Bitcoin (BTC) reserve if elected. Although Nawrocki won the runoff with 50.9% of the vote, many in Poland’s crypto community are now pressuring him to honor his campaign pledge to protect digital innovation.
The legislation is designed to align Poland with the EU’s Markets in Crypto-Assets Regulation (MiCA), but critics argue the country’s approach is unnecessarily harsh. With Poland hosting one of Europe’s fastest-growing crypto communities, the bill’s outcome could set a precedent for how MiCA is enforced across the EU.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.