- Poland’s new crypto law imposes strict KNF licensing and heavy penalties.
- Industry warns rules could stifle innovation and push firms abroad.
- The president’s decision may determine Poland’s crypto market future.
Poland has moved closer to enacting one of Europe’s strictest cryptocurrency laws, drawing sharp criticism from industry leaders and sparking a heated political debate.
The legislation, framed as an interpretation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, aims to strengthen oversight and protect investors but has raised concerns that it could stifle innovation and drive businesses abroad.
Stricter rules take centre stage
The Polish lower house, the Sejm, approved the Crypto-Asset Market Act (Bill 1424) on September 26, with 230 votes in favour, 196 against, and no abstentions.
The bill now awaits review by the Senate. If passed, it would position Poland as a jurisdiction with one of the most tightly regulated crypto markets in the EU.
Under the new framework, the Polish Financial Supervision Authority (KNF) will serve as the primary regulator for all crypto-asset service providers, including exchanges, issuers, and custodians, whether domestic or foreign.
Operators will need to secure a KNF license and demonstrate strong capital reserves, robust compliance systems, risk management protocols, and anti-money laundering procedures.
A six-month transition period will allow companies to align with the new rules, but violations could result in fines of up to 10 million zlotys ($2.8 million) or prison sentences of up to two years.
Supporters of the legislation, led by Civic Coalition rapporteur Krystyna Skowrońska, argue that the law is necessary to protect investors, stabilise the rapidly growing digital asset market, and ensure alignment with EU standards.
Proponents say it will bring legitimacy to a sector often criticised for opacity while shielding Poland from systemic financial risks.
Industry voices warn of exodus
Critics, however, warn that Poland’s approach goes far beyond what the EU’s MiCA regulation requires.
Przemysław Kral, CEO of the European crypto exchange Zondacrypto, called the legislation “a major step backwards,” arguing that it treats crypto as a threat rather than an opportunity.
He noted that the new rules could criminalise basic activities such as smart contract development, discouraging talent and investment in the country.
Industry insiders fear that the strict licensing and regulatory requirements, combined with KNF’s notoriously slow approval process, averaging 30 months, will drive startups and smaller operators abroad.
Kral highlighted Zondacrypto’s own experience: despite being founded in Poland, the company is regulated in Estonia, where it pays more than €6 million in VAT annually.
Such relocations could deprive Poland of jobs, tax revenue, and the chance to cultivate a thriving digital economy.
Prominent Bitcoin advocate Dominik Fel echoed these concerns, warning that Poland risks becoming a “museum of innovation” if the legislation takes effect.
Opposition politicians, including Confederation MP Krzysztof Rzońca, have urged President Karol Nawrocki to veto the bill, arguing that it could dismantle the domestic cryptocurrency market.
Apelujemy do Prezydenta @NawrockiKn o weto! Rząd forsuje ustawę, która zniszczy rynek kryptowalut w Polsce!
Konfederacja złożyła ponad 100 poprawek do tej ustawy. Wszystkie zostały odrzucone! @SlawomirMentzen z mównicy sejmowej rozłożył rządową narrację na łopatki! pic.twitter.com/OvIhPsPCYZ
— Krzysztof Rzońca (@KrzysztofRzonca) September 24, 2025
Poland’s political divide shapes the debate
The vote has exposed deep political divisions.
The Civic Coalition, Poland 2050-TD, PSL-TD, the Left, and Together supported the law, while the Law and Justice party (PiS), Confederation, and the Republicans opposed it.
PiS has announced plans to draft a lighter alternative modelled on other EU frameworks, which it intends to present at its congress in late October.
Analysts suggest that President Nawrocki’s decision will be pivotal for Poland’s future in digital assets.
While he does not personally hold cryptocurrencies, libertarian and pro-Bitcoin groups that supported his election are lobbying for a lighter regulatory approach.
The president’s choice could determine whether Poland positions itself as a leader in cautious but investor-friendly oversight or risks stifling innovation and losing its emerging digital economy to friendlier jurisdictions.