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Poland is taking a significant step to formalize its burgeoning digital asset market with the recent approval of new legislation by the Sejm, the lower chamber of parliament. This comprehensive bill introduces a licensing regime for cryptocurrency service providers (CASPs), aligning the nation’s regulatory framework with the European Union’s Markets in Crypto-Assets (MiCA) regulation. The legislation now moves to the Senate for further consideration, signaling a pivotal moment in the country’s approach to digital finance.
KNF Designated as Primary Regulator
The newly proposed framework designates the Komisja Nadzoru Finansowego (KNF), Poland’s financial supervisory authority, as the central body responsible for overseeing digital asset activities. Under this new structure, all CASPs, including exchanges, issuers, and custodian service providers operating within Poland, whether domestically based or international entities, will be mandated to obtain a license from the KNF. This move aims to establish a clear and consistent regulatory environment, ensuring that all market participants adhere to established financial standards.
Stringent Licensing Requirements and Penalties
To qualify for a license, prospective CASPs will be required to submit extensive documentation. This includes detailed information regarding their corporate structure, capital adequacy, internal control mechanisms, compliance procedures, risk management strategies, and anti-money laundering (AML) protocols. The bill also introduces significant penalties for non-compliance, with potential fines reaching up to 10 million Polish złoty (approximately $2.8 million) and possible prison sentences of up to two years. These measures underscore the government’s commitment to robust oversight and consumer protection within the cryptocurrency sector.
Industry Concerns and Transition Period
While the legislation aims to foster a more secure and regulated environment, it has drawn some criticism from segments of the Polish crypto community. Concerns have been raised that overly restrictive regulations could potentially stifle innovation and prompt companies to relocate their operations to more lenient jurisdictions. Nevertheless, if enacted into law, service providers will be granted a six-month grace period to comply with the new licensing prerequisites. Failure to meet these requirements within the stipulated timeframe could lead to the cessation of operations and potential legal repercussions for non-compliant firms.
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