According to Cointelegraph, Poland's lower house of parliament approved the Crypto Asset Market Act on Friday. The Sejm voted 230 in favor and 196 against the legislation. The bill now moves to the Senate for consideration.
The legislation creates a licensing system for crypto asset service providers. All exchanges, issuers, and custody providers must obtain licenses from Poland's financial supervisor, the Komisja Nadzoru Finansowego. The bill aligns Poland's rules with the European Union's Markets in Crypto Assets Regulation.
The law introduces criminal penalties for violations. Fines can reach 10 million Polish zlotys or $2.8 million. Prison terms of up to two years are also possible. Companies will have six months to secure required licenses after the bill becomes law.
Opposition Warns of Market Destruction
The legislation affects Poland's three million cryptocurrency holders. Opposition lawmaker Janusz Kowalski called it "the largest and most restrictive cryptocurrency law in the EU." He described the 118‑page document as excessive compared to shorter laws in Germany and the Czech Republic.
Cryptonews reports that blockchain advocate Tomasz Mentzen questioned the regulator's capacity. The KNF processes applications in an average of 30 months, the slowest in the EU. This timeline could prevent companies from meeting the six‑month transition deadline.
President Karol Nawrocki faces pressure to veto the legislation. He pledged during his campaign to oppose "tyrannical regulations" restricting innovation. The president won office in June 2025 with 50.9 percent of the vote. Industry groups now urge him to block the law.
Restrictive Approach Contrasts Global Trends
Poland's approach differs from other nations embracing cryptocurrency. We previously reported that 15 US states are moving forward with plans for Bitcoin reserves, with Pennsylvania leading the initiative in November 2024. This contrasts with Poland's restrictive implementation.
FinancialContent notes that competing EU jurisdictions may benefit from Poland's strict rules. Cyprus and Malta could attract Polish crypto businesses seeking lighter regulatory environments. The law may force smaller companies to exit the market entirely.
Traditional financial institutions maintain distance from the sector. Broker XTB already considers relocating to Cyprus for licensing. Critics argue Poland's version exceeds MiCA requirements, burdening companies with unnecessary bureaucracy. The final outcome depends on Senate deliberations and presidential action.