How Poland’s crypto asset act could improve business mobility
Bartosz Jankowski
by Bartosz Jankowski
Currently ranked 33 in the world in the Chainalysis’ Global Crypto Adoption with over 1.1 million cryptocurrency owners, Poland’s cryptocurrency market is quickly emerging as an interesting place to invest.
Growing pressure
According to the 2023 PwC Strategy & Crypto Survey, over 60% of respondents in Poland said they would be willing to consider changing their current financial service provider in the event of insufficient crypto asset availability, signalling the growing need for the development of crypto asset portfolios amongst investors. This pressure is sure to increase with the adoption of new crypto regulations.
In mid-January this year, Poland’s Ministry of Finance published the draft Crypto Asset Act coming as a result of the EU adopting the Markets in Crypto Assets (MiCA) Regulation.
Providing stability
The act is part of an EU-wide policy to create a stable and attractive European market for the crypto sector, thus enabling increased business mobility across the continent. The act seeks to maintain legal stability, promote innovation, ensure consumer and investor protection, and safeguard market integrity and financial stability.
To this end, Poland’s Financial Supervision Authority (KNF) has been tasked as the competent authority for the application of the EU’s MiCA, and will be equipped with a range of powers, including:
The ability to impose sanctions on offerors, issuers of, and those applying for cryptocurrencies, including the power to suspend or prohibit a cryptocurrency provider’s services;
Supervisory powers with regard to, amongst others, the ability to impose a fine on persons professionally brokering or executing transactions related to cryptocurrencies; and
Sanctioning measures addressed to crypto asset service providers.
Supervising services
The issuers of crypto-asset-linked tokens and e-money-linked tokens and crypto asset service providers will be subject to supervisory obligations, including an obligation to provide the KNF with information on their activities.
The new act will also introduce the criminal liability of supervised entities. The severity of punitive measures will depend on the degree of misconduct. This is aimed at ensuring the safety of trade, including primarily consumers, state security, and protecting investors.
The draft is planned to be adopted by the Polish government in the second quarter of 2024 and could prove to be a real driver for economic development in a country which has recently seen an upturn thanks to a change in government and a renewed focus on international trade and global business mobility.
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