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Poland Emerges as a Key Player in Crypto Regulations

In recent years, Poland has established itself as a significant player in the world of cryptocurrency, with a regulatory framework that is both robust and tailored to the needs of businesses operating in this dynamic space.

The Concept of the Crypto License

At the heart of Poland’s approach to crypto regulations lies the concept of the “Crypto License,” a specialized permit designed specifically for entities engaged in virtual currency-related activities. Unlike more general licenses, such as the Poland EMI License, which caters to a broad range of financial services beyond virtual currencies, the Crypto License is uniquely crafted to address the specific needs of businesses operating in the crypto space.

Unique Features of the Crypto License

  • Targeted Regulatory Framework: The Crypto License provides clarity and compliance for entities navigating this complex domain.
  • Specific Activities Covered: Entities involved in virtual currency business can obtain a Crypto License for:
    • Exchanges between virtual currencies and traditional means of payment (FIAT currencies)
    • Exchanges solely between virtual currencies
    • Intermediation in the aforementioned exchanges
    • Keeping accounts, pertaining specifically to virtual currency, involves a collection of electronic identification data

Key Requirements for Crypto Licensing in Poland

To obtain a Crypto License in Poland, businesses must fulfill specific criteria focusing on two main aspects: criminal record and professional qualifications.

No Criminal Record Requirement

  • Individuals involved in virtual currency activities need to have a clean legal record, free from intentional crimes against various aspects such as state institutions, justice, property, and economic turnover.
  • Entities must ensure that partners or members of management bodies haven’t been legally convicted of specified crimes.

Professional Qualifications Requirement

  • Individuals involved in virtual currency activities need knowledge or experience related to this domain. Qualifications can be achieved through training, courses, or a minimum one-year practical engagement in virtual currency activities.

Registration Process and Compliance for License Obtaining

Companies intending to operate in the virtual currency space in Poland must undergo a registration process with the Minister of Finance after company formation. The application should include essential details such as:

  • Name
  • Company information
  • Services offered in the virtual currency field
  • A qualified electronic signature or ePUAP profile signature

Post-Registration Obligations for Crypto Licensed Companies

Once registered, entities conducting virtual currency business must adhere to specific post-registration obligations under Polish law:

  • Identify and assess money laundering and terrorist financing risks
  • Implement financial security measures, including customer identification, ongoing monitoring, and internal procedures
  • Notify Polish authorities of particular transactions
  • Cooperate with authorities in case of crime suspicion

Penalties for Non-Compliance

In instances of inadequate fulfillment or non-compliance with post-registration crypto-business obligations, the Polish authorities have the authority to impose administrative penalties, which may include:

  • Publication of information about the entity and its illicit activities
  • An order to cease specific actions by the registered (crypto licensed) entity
  • Deletion from the register of activities in the field of virtual currency (revoking the license)
  • Prohibition of performing duties in a managerial position by a responsible person for a period not exceeding one year
  • A financial penalty, imposed up to twice the amount of the benefit gained or the loss avoided by the entity due to the infringement

Conclusion

Obtaining a Crypto License in Poland involves navigating a regulatory landscape that emphasizes legal integrity and professional qualifications. Understanding the nuanced requirements, navigating the registration process, and fulfilling post-registration obligations are crucial steps for businesses seeking success in Poland’s crypto space.