Poland is on the verge of reshaping its digital asset landscape after lawmakers advanced a bill that could make the country one of the most heavily regulated crypto markets in Europe.
What was intended as a simple adoption of the EU’s MiCA framework has instead spiraled into a political flashpoint, with critics warning the move risks driving talent and capital abroad.
The Sejm, Poland’s lower house, approved the measure last week by a narrow margin. The proposal now heads to the Senate, but the controversy around it has already spilled beyond the crypto industry and into national politics. President Karol Nawrocki, only recently sworn into office, faces mounting calls to veto the law in order to protect domestic innovation.
At the heart of the bill is expanded authority for Poland’s Financial Supervision Authority (KNF). The watchdog would be empowered not only to license and monitor exchanges and service providers, but also to pursue criminal charges against unlicensed operators. Penalties could reach 10 million złoty ($120,000) and prison sentences of up to two years. Proponents argue these measures are necessary to shield consumers in a country where surveys show nearly one in five investors has already experienced fraud.
Yet many entrepreneurs see the plan as heavy-handed. Startup founders describe compliance requirements as prohibitively expensive, while established firms are already considering leaving. Brokerage giant XTB has suggested it may relocate its licensing base to Cyprus. Smaller platforms warn they could be pushed out entirely by the fees and bureaucracy.
The backlash has been sharp. Industry portal Bitcoin.pl labeled the bill “a repression apparatus disguised as regulation,” claiming the costs and restrictions could deliver a fatal blow to Poland’s fast-growing crypto sector. Opposition lawmakers, including outspoken Bitcoin advocate Sławomir Mentzen, echoed those concerns during parliamentary debates.
Despite the uproar, government officials maintain the changes are crucial. Deputy Finance Minister Jurand Drop has emphasized that without stricter oversight, retail investors remain vulnerable to scams. Supporters also argue that aligning closely with MiCA will give Poland credibility in international markets.
Whether the law strengthens Poland’s role as a regional hub or triggers an exodus of companies may depend on the Senate’s deliberations – and ultimately on the president’s decision. For now, the country stands at a crossroads: embrace regulation as a path to legitimacy, or risk stifling the very industry it aims to secure.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/new-law-could-make-poland-one-of-europes-toughest-crypto-markets/