Poland’s Aggressive Crypto Crackdown Sparks Public Outcry

• Poland’s parliament (Sejm) has advanced a strict crypto bill (printing No. 1424), moving it through committee stages despite heavy public backlash.
• The law introduces stringent registration, compliance, and reporting obligations for crypto companies operating in Poland.

Poland’s Sejm (the lower house of Parliament) has advanced a controversial cryptocurrency bill that aims to introduce the EU’s Markets in Crypto-Assets (MiCA) regulation. But the proposed law has been roundly criticized by crypto firms, economists, artists, and public figures, who say its restrictions could jeopardize local platforms’ survival.

Key Provisions of the Bill

The legislation introduces the country’s Financial Supervision Authority (KNF) with wide monitoring authority over crypto service providers (CASPS). These include licensing, implementing high annual fines, monitoring, reporting requirements, and the blocking of nefarious domains.

Operating without authorization may lead to prison sentences up to 5 years or fines up to PLN 5,000,000 (≈ US$1.3–1.4 million), or both.

The bar of entry for new crypto companies is especially high: the price to pay for a license might even exceed PLN 500,000 in “activation fee” and then monthly costs of compliance may range between PLN 30,000 – 40.000. It might require you to generate overcomplicated documentation and wait for approval for a long time.

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Public and Industry Backlash

Local companies warn that these rules will benefit big incumbents and push out small startups from Poland. Dozens are exploring relocating overseas to escape the high costs and regulatory barriers.

A Polish economist, Prof. Krzysztof Piech, criticized some provisions as “murderous” in their demands on paperwork, compliance, and licensing burdens.

There is also pushback from the political side: opposition parties have questioned the proportionality of the punishments, and newly elected President Karol Nawrocki has said he may veto the law if it passes in its current form.

Potential Impact & What to Watch

If passed, the legislation could result in closures of numerous smaller exchanges; an estimate is that as many as 90% of Polish crypto exchanges could close by the end of 2025 under combined MiCA and national rules.

Licensing could demand legal, financial, and operational forms in excess of what numerous homegrown platforms currently possess. Expenses and delay may restrict access to those that are able to comply.

The bill still has to pass through further legislative readings; its final form could change, especially if the president exercises veto power.

Source: X

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