CMC News

#Poland Crypto Bill Advances Amid Industry Concerns

Poland's lower house of parliament, the Sejm, approved the #Crypto-Asset Market Act on Friday with 230 votes in favor and 196 against. The #legislation now advances to the Senate for consideration, introducing comprehensive restrictions on crypto asset service providers operating within Poland's borders.

Bill 1424 establishes the Komisja Nadzoru Finansowego (KNF) as the primary regulator for the country's crypto asset market. The measure aligns Poland's framework with the European Union's #MiCA, though critics argue the implementation exceeds EU requirements in scope and severity.

All crypto asset service providers, including exchanges, issuers, and custody providers, must obtain KNF licenses regardless of their domestic or foreign status. The licensing regime requires comprehensive applications detailing corporate structure, capital adequacy, internal controls, compliance systems, #risk management policies, and Anti-Money Laundering procedures.

Companies operating in Poland face a six-month transitional period to secure the required licenses once the bill becomes law. Failure to obtain proper licensing could result in operational shutdowns and legal consequences for providers attempting to serve Polish customers.

The bill introduces criminal liability for violations, imposing fines up to 10 million Polish zlotys, equivalent to approximately $2.8 million. Prison terms of up to two years may apply for certain infractions, representing some of the strictest penalties for crypto-related violations in the EU.