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Cryptocurrency and Financial Crime in Poland: Regulations and Initiatives

In recent years, Poland has emerged as a hub for cryptocurrency businesses. However, with the increasing popularity of cryptocurrencies, the need to prevent financial crime has prompted the Polish authorities to introduce stricter regulations.

EU Rules Applicable to Poland

The European Union’s Economic and Monetary Affairs Committee approved the Markets in Crypto-Assets (MiCA) regulation in 2022. This regulation applies directly to Poland and includes measures such as:

  • Improved definition of inside information related to crypto asset service providers (CASPs): The MiCA regulation provides a clearer understanding of what constitutes inside information for CASPs.
  • Surveillance and enforcement mechanisms: The regulation establishes mechanisms for surveillance and enforcement, aimed at preventing market abuse.
  • Obligation for significant CASPs to publish energy consumption data on their websites: This measure is designed to reduce the high carbon footprint of cryptocurrencies.

Environmental Responsibilities

The MiCA regulation also introduces environmental responsibilities, requiring significant CASPs to:

  • Publish their energy consumption data on their websites
  • Share this information with national authorities

This move aims to reduce the impact of cryptocurrencies on the environment.

Anti-Money Laundering and Counter-Terrorist Financing Directives

The anti-money laundering rules are outlined in the anti-money laundering and counter-terrorist financing (AML/CFT) directives, which do not overlap with MiCA. The European Banking Authority (EBA) will maintain a public register and conduct enhanced AML/CFT checks on non-compliant CASPs.

Supervision of Stablecoins

The supervision of stablecoins will be assigned to the European Banking Authority (EBA). Issuers of stablecoins who operate within the EU will be required to:

  • Build up a sufficient liquid reserve, with a 1:1 ratio, partly in the form of deposits.
  • Enable all stablecoin holders to be offered a claim by the issuer at any time and free of charge.

Regulatory Sandbox and Support

The EU agreed on the final regulation for the pilot regime for DLT-based market infrastructures in 2022. This provides a legal framework for trading and settlement of transactions in cryptoassets that qualify as financial instruments under Markets in Financial Instruments Directive 2 (MiFID 2). The pilot is planned to be launched in March 2023.

Polish Initiatives

Polish crypto companies are supported by national initiatives, including:

  • KNF’s Innovation Hub: This provides virtual sandboxes and consults with Fintech companies.
  • The Blockchain and New Technologies Chamber of Commerce: This represents the interests of the industry under applicable Polish legislation.

Cryptocurrency Licence in Poland

Poland has not introduced a robust crypto licensing process. However, the Tax Administration Chamber continues to issue Polish crypto authorisation, which is an equivalent of a cryptocurrency licence. To obtain a crypto licence, companies must first be included in the Register of Virtual Currencies as part of AML/KYC procedures.

Conclusion

In conclusion, Poland’s regulatory environment for cryptocurrencies is changing rapidly. Crypto businesses operating in Poland should be aware of these developments and take steps to comply with the new regulations.