Poland’s lower house of parliament, the Sejm, has passed the Crypto-Asset Market Act, introducing new rules for the country’s digital asset sector and sparking strong reactions from both industry leaders and politicians.
new licensing and compliance rules
The bill establishes the Komisja Nadzoru Finansowego (KNF) as the main regulator for Poland’s crypto asset market.
Under the proposed regime, all crypto asset service providers—including exchanges, issuers, and custodians, whether domestic or foreign—must obtain a license from the KNF to operate.
Applicants are required to submit detailed documentation on their corporate structure, capital, compliance controls, risk management, and anti-money laundering (AML) procedures.
If enacted, companies will be given a six-month window to comply.
Failure to secure a license could result in operations being halted and legal action, with penalties including fines up to 10 million Polish zlotys ($2.8 million) and prison sentences of up to two years.
concerns over market impact
The bill received 230 votes in favor and 196 against. Critics warn that the strict licensing and criminal liability provisions could harm Poland’s bitcoin and broader crypto market, which serves an estimated three million users.
Janusz Kowalski, a lawmaker from the opposition party, highlighted the bill’s length and severity, stating:
“This is the largest and most restrictive cryptocurrency law in the EU.”
He argued that the 118-page legislation represents overregulation when compared to other EU countries.
regulatory delays and political tension
Tomasz Mentzen, a blockchain advocate and politician, criticized the KNF’s slow processing times, noting that the average application takes 30 months.
He urged the Senate and President Karol Nawrocki to veto the bill, warning it could lead to the “destruction of blockchain and stablecoins” in Poland.
president’s stance on innovation
President Karol Nawrocki, who recently won Poland’s runoff election with 50.9% of the vote, had pledged to support bitcoin and protect innovation from “tyrannical regulations.” On social media, he stated:
“As President of the Republic of Poland, I will be the guarantor that tyrannical regulations restricting your freedom do not come into effect.”
The fate of the bill now lies with the Senate and the president, as the debate around regulation versus innovation continues.
