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Poland Emerges as a Leader in Cryptocurrency Industry

WARSAW, POLAND - Poland has rapidly established itself as a major player in the global cryptocurrency market. The country’s growth can be attributed to government initiatives, innovative private sector companies, and a growing regulatory framework.

Government Initiatives Drive Growth

In January 2024, the Polish government introduced a comprehensive regulation bill aimed at bringing the country’s crypto industry in line with European Union standards. The proposed law will increase the oversight powers of the Polish Financial Supervision Authority (KNF) and implement the EU’s Markets in Crypto-Assets Regulation (MiCA).

Key Aspects of the Regulation Bill

  • Increased oversight powers for the KNF
  • Implementation of MiCA to prioritize consumer protection and financial stability
  • Virtual sandboxes for technological development through consultations

Strengthening Compliance

Poland has implemented measures requiring companies to register in a particular registry and comply with local laws when exchanging virtual currencies. The introduction of the PIT-38 tax form in November 2020 has made it easier for residents to report their crypto revenues.

Key Regulatory Authorities and Bodies

  • Polish Financial Supervision Authority (KNF)
  • General Inspector of Financial Information
  • National Bank of Poland
  • Polish Blockchain Association
  • Digital Assets Association Poland

Regulatory Landscape Takes Shape

Since November 2021, Poland has established regulations for cryptocurrency businesses, requiring registration and licensing to operate. This marks a significant step towards ensuring conformity with national rules.

Taxation Considerations

The first crypto tax regulations were enacted in November 2020, with residents required to include crypto gains on their tax returns. Crypto profits are taxed at rates applied to personal income, ranging from 18% to 32%, while businesses pay a flat 19%.

Market Size and Growth Projections

The cryptocurrency market in Poland is expected to reach US$77 million by 2028, growing at a CAGR of 11.09%. Supportive policies and a fast-growing tech-savvy population are driving growth.

Key Players Shaping the Marketplace

Companies like Ideologic, Novus Team, and DevBrother are key players shaping the look of the Polish crypto scene today, offering services in software development, financial services, blockchain, and other solutions.