Poland’s parliament has set the stage for a major shift in cryptocurrency regulation. The lower house (the Sejm) recently passed the Crypto-Asset Market Act, a sweeping bill that imposes strict licensing, penalties, and oversight on the country’s crypto industry. The legislation now moves to the Senate, but it is already stirring controversy across the political spectrum and within the industry.
Heavy Penalties and Licensing Rules
Under the proposal, all crypto-asset service providers – including exchanges, custody platforms, and issuers – would need approval from Poland’s financial watchdog, KNF. The regulator would also gain the authority to block noncompliant domains and impose multimillion-zloty fines.
What worries many stakeholders most are the criminal penalties. Companies operating without a license could face fines up to 10 million PLN (about $2.8 million) and prison terms of up to two years. Critics say these measures go far beyond the European Union’s MiCA framework, accusing lawmakers of “gold-plating” by layering on stricter rules than the EU requires.
Industry Concerns and Political Divides
Smaller firms fear the law could wipe them out. Some analysts predict up to 90 percent of Polish crypto exchanges may close by the end of 2025 due to the high costs of licensing, capital requirements, and compliance. Startups and niche providers, often operating with lean resources, would likely be hit hardest.
Political opposition is growing as well. Several lawmakers warn the law could crush innovation. Janusz Kowalski, a deputy from the PiS party, criticized the measure’s severity, while President Karol Nawrocki has hinted at the possibility of a veto if the final version appears too restrictive.
Supporters Call for Stronger Oversight
Backers of the bill argue that regulation is overdue. They point to years of minimal oversight, which they claim enabled scams and fraud to flourish in Poland’s crypto sector. Supporters also highlight the need to align with the EU’s MiCA rules, which became effective in late 2024, and insist that strong consumer protections are essential.
As the Senate reviews the proposal, lawmakers are debating possible amendments, including softer penalties and longer transition periods. The final outcome could determine whether Poland emerges with one of the EU’s strictest crypto regimes or a more balanced framework that supports both safety and innovation.
