On Friday, the Polish Sejm passed the Act on the Cryptoasset Market and Online Currency Exchanges, which was intended to implement the EU’s MiCA regulation. The goal was to organize the market, increase investor protection, and create predictable rules for companies. However, the adopted provisions go far beyond the EU framework and – instead of strengthening the market – could weaken it and trigger a mass outflow of innovation from Poland.
“From the beginning, we appealed for MiCA to be implemented in a proportional and competitive way. Poland had the chance to adopt regulations true to the spirit of MiCA: protecting investors while enabling innovation and attracting capital. Instead, the adopted law adds more barriers – complex licensing procedures, very high penalties, and broad supervisory powers for the regulator. This is a step toward overregulation, not order,” commented Sławek Zawadzki, Co-CEO of Kanga Exchange.
New Law: More Bureaucracy and Risks for Businesses
Under the new law, the Polish Financial Supervision Authority (KNF) will oversee the cryptoasset market. The regulator will gain the power to block company operations by adding them to a registry of “unfair domains” without an effective, immediate appeal process. Running a business without a license or issuing tokens may result in fines of up to PLN 10 million and even two years in prison. The law also introduces hundreds of pages of licensing requirements and regulations, while in many EU countries the registration process is far simpler.
“Regulations should build trust and user safety, but they cannot simultaneously scare off entrepreneurs and investors. Such extensive requirements could drive Polish firms abroad, while global players would only ‘passport’ licenses from other countries without real presence in Poland. As a result, we would lose jobs, taxes, and know-how, and investors would turn to foreign, often less regulated, platforms,” warned Zawadzki.
Customer Safety: The Paradox of Restrictive Regulations
The declared purpose of the act is to strengthen customer protection. Yet the complexity and higher costs imposed on businesses may backfire. Users discouraged by limited domestic offerings or higher prices are likely to turn to foreign services outside Poland’s regulatory reach.
“Instead of building a market where Polish investors can operate safely and legally, we risk shifting them to less transparent foreign entities. This will not increase safety – quite the opposite,” stressed Zawadzki.
A Missed Opportunity for a European Innovation Hub
Poland has one of the fastest-growing crypto markets in the region, with a well-developed network of on-ramp and off-ramp points (facilitating conversion between cash and crypto) and a large community of users – studies suggest as many as 18% of Poles have already interacted with cryptoassets. Predictable and business-friendly regulation could have reinforced this advantage and attracted international players.
“We have the potential to become a key blockchain hub in Europe. Unfortunately, the adopted rules increase uncertainty and risk of doing business in Poland. If we want to develop a modern digital economy, we need regulations that not only protect investors but also encourage innovators to build their businesses here,” said Zawadzki.
Dialogue Instead of a Chilling Effect
For months, the industry had called for dialogue and support in creating regulations that would provide both investor safety and space for innovative financial services to grow. Instead, the new law risks creating a “chilling effect” – discouraging entrepreneurs from operating in Poland rather than attracting capital and development.
Sławek Zawadzki – Co-CEO of Kanga Exchange
Cryptocurrency, fintech, and blockchain expert with nearly 20 years of experience.
Source: ceo.com.pl
