Poland Approves Crypto Bill, Tightens Rules for Exchanges and Providers

Highlights:

• Poland has approved a crypto bill requiring licenses and strict supervision of all crypto providers.
• The law has faced backlash over high costs and slow regulatory processing by KNF.
• President Nawrocki had pledged support for crypto, while the Senate review may alter the law.

Poland’s lower house of parliament, the Sejm, passed Bill 1424 to regulate the country’s crypto market. The legislation is consistent with the European Union Markets in Crypto-Assets (MiCA) framework. It obligates all crypto asset service providers (CASPs), such as exchanges, issuers, and custody platforms, to be licensed by the Polish Financial Supervision Authority (KNF). Lawmakers require CASPs to submit detailed applications covering corporate structure, capital adequacy, compliance, risk management, and anti-money laundering procedures.

Poland's Sejm has approved a strict law on crypto assets.

The Sejm, the lower house of the Polish parliament, has passed a new law on crypto asset markets. The document is intended to transpose the European Union's Markets in Crypto-Assets (MiCA) rules into national law.… pic.twitter.com/H2VmvlCh5z

— cryptoinsiderxxx (@cryptoiinsiderx) September 29, 2025

The law provides criminal responsibility in instances of violation. Fines can reach 10 million Polish zlotys ($2.8 million), and imprisonment sentences can reach two years. Existing providers were given a six-month transitional period to obtain licenses as provided by lawmakers. Authorities can terminate operations and impose legal penalties for non-compliance. The Sejm debated the bill and supported it with 230 to 196 votes.

The legislation further requires CASPs to have secure client accounts. The KNF will oversee operations to guard users against fraud and unauthorized operations. The government stressed the necessity to safeguard investors and promote transparency throughout the market. According to Polish Deputy Finance Minister Jurand Drop, about a fifth of crypto investors commit fraud, which is why it is essential to have clear regulations.

Poland Approves Crypto Bill Amid Criticism from Industry and Lawmakers

The crypto community and opposition politicians immediately criticized the law. Janusz Kowalski, a Sejm member from the Law and Justice party, criticized the legislation as overly restrictive and warned it could harm Poland’s three million crypto holders. He described the law as “118 pages of overregulation” compared to shorter frameworks in Germany and the Czech Republic.

🚨Platforma Obywatelska Donalda Tuska niszczy rynek kryptoaktywów w Polsce i uderza w 3 miliony Polaków posiadających kryptowaluty. @MF_GOV_PL chce wsadzać do więzienia za innowacje kryptowalutowe.

👉Polska implementacja unijnego rozporządzenia MiCA (Markets in Crypto-Assets… pic.twitter.com/Ki5QjnbH25

— Janusz Kowalski 🇵🇱 (@JKowalski_posel) September 24, 2025

Tomasz Mentzen, a blockchain advocate and politician, highlighted the slow pace of the KNF, calling it the “slowest regulator in the EU.” He noted that processing applications currently averages 30 months. Analysts and corporate leaders cautioned that the expensive licensing fee and regulation would compel the companies to move elsewhere. An example is XTB, the largest broker in Poland, which has been contemplating the option of obtaining a Cyprus license.

Stringent regulations can deter new participants since 18% of Polish nationals already own crypto assets. Industry players hoped that President Karol Nawrocki would step in to ensure market stability. Many pointed to overregulation as potentially choking blockchain projects, stablecoins, and local innovation. Meanwhile, the central bank of Poland recently declared that it will not add Bitcoin to its reserves because of its volatility.

Presidential Support and Senate Review Will Shape Poland’s Crypto Market

In his bid to become president, Karol Nawrocki pledged to support crypto development. He denounced overregulation and dedicated himself to defending innovation and the freedom of investors. According to the political observers, the law now proceeds to the Senate, where it can be subject to further scrutiny, and its ultimate shape can change.

Former presidential candidate Slawomir Mentzen asked the Senate and the President to veto the bill to protect the crypto industry in Poland. The members of the House and Senate are looking forward to the upper house review. Analysts caution that without amendments to the law, it will curtail market activity and restrict domestic opportunities. The ultimate success of the bill will define the future of crypto in Poland under the rules that are aligned with the EU.