Poland passes controversial cryptocurrency law

The Polish parliament has just passed a law regulating the crypto market according to the EU's MiCA regulations, but it has sparked controversy for being considered overly restrictive. The law grants significant powers to the Financial Supervisory Authority (KNF), including oversight of exchanges, handling fraud, and enforcing criminal responsibility. Serious violations can be fined up to 10 million PLN (120.000 USD) or face 2 years in prison. Exchanges must separate customer accounts to protect assets.

The government believes that the law is necessary to protect investors, as 20% of the population participating in the crypto market have previously been victims of fraud. However, the cryptocurrency community and the opposition are concerned about high compliance costs, the risk of “killing” innovation, and driving businesses abroad. Some companies, such as XTB, have considered applying for a license in Cyprus. President Karol Nawrocki is being urged to veto this bill.