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Regulatory Framework for Crypto-Assets, Stablecoins, and Decentralized Finance (DeFi) in Poland

General Framework

The regulatory framework for crypto-assets, stablecoins, and decentralized finance (DeFi) in Poland is governed by various legal acts and regulations. The Polish Financial Supervision Authority (PFSA) is responsible for supervising banks’ activities involving crypto-assets.

  • Regulatory Bodies: The PFSA is the primary regulator of banks operating in Poland.
  • Applicable Laws and Regulations:
    • Banking Law
    • Act on Payment Services
    • Securities Trading Act

Crypto-Assets

The Polish regulatory framework does not specifically address stablecoins, but they may be qualified as electronic money under the Polish Act on Payment Services.

  • Stablecoin Regulation: There is a need for legislation in this area. Stablecoin activities are expected to be regulated under the broader framework provided by the Markets in Crypto-Assets (MiCA) regulation.
  • Existing Regulations: Existing regulations, such as the Banking Law and Securities Trading Act, may apply to banks holding or dealing in crypto-assets.

Banks Holding or Dealing in Crypto

Banks operating in Poland are subject to various legal acts and regulations when it comes to holding or dealing in crypto-assets.

  • Regulatory Obligations: Banks must comply with applicable laws and regulations. The PFSA closely monitors compliance and can impose sanctions for non-compliance.
  • Transposition of Basel Committee Guidelines: Poland will transpose into its legislation by January 1, 2025, the new guidelines for banks holding crypto-assets announced by the Basel Committee on Banking Supervision.

Decentralized Finance (DeFi)

The Polish regulatory framework does not specifically address DeFi. However, existing regulations may apply to decentralized financial products.

  • Regulatory Risks: The PFSA highlights significant financial and technological risks associated with DeFi, including potential circumvention of regulations and susceptibility to various types of fraud.
  • Anti-Money Laundering (AML) Obligations: Institutions offering or issuing DeFi products are subject to AML obligations similar to those imposed on institutions dealing with traditional financial products.