Polish lawmakers have approved a bill incorporating the European Union's cryptocurrency regulation, MiCA, into national law. According to Reuters, the government-backed bill passed parliament on Friday, bringing the long-awaited legal framework for the country's digital asset market closer to completion. The regulation is seen as a crucial part of Poland's compliance process, which must be completed by July. According to the country's financial supervisory authority, failure to take this step on time could result in local crypto companies losing their licenses to offer cryptocurrency services in the country. The approval of the law comes at a time of increased pressure on the cryptocurrency market in Poland. Prosecutors are investigating fraud against Zondacrypto, known as Poland's largest digital asset exchange. The investigation has resulted in thousands of users losing access to their funds, with total losses exceeding 350 million zlotys, or approximately $95.93 million.
Zondacrypto Investigation Fuels Political Debate
The Zondacrypto case is not only being treated as a matter of financial oversight in the country. The investigation has also increased political tensions in Warsaw. Polish Prime Minister Donald Tusk claimed in April that Russian mafia money and Russian secret services played a role in the processes connected to the exchange.
Tusk reiterated a similar assessment earlier this month at a government meeting, citing information he received from security services. The Prime Minister said that "the Russian mafia and its money" were involved in the organization of the Zondacrypto exchange. These statements showed that crypto regulation is being debated not only in terms of investor protection, but also in terms of national security and money laundering risks. However, these allegations are considered part of the investigation process. While the legal process regarding the exchange continues, user losses and withdrawal problems have strengthened calls for stricter oversight of crypto companies in Poland.
Timeline for MiCA Compliance is Tightening
The European Union's MiCA regulation introduces common rules for companies issuing crypto assets and crypto service providers. This framework aims to establish a more standardized structure across the EU in areas such as licensing, supervision, consumer protection, transparency, and market integrity.
The law adopted by Poland also aims to adapt this regulation to local legislation. This will clarify the rules under which crypto companies in the country will operate, the powers of supervisory bodies, and the sanctions that will be applied in case of violations.
The bill also includes high fines for obstructing supervision. According to the government's draft text, the maximum fine for such violations is set at 25 million zloty, or approximately $6.9 million. In the alternative text presented by President Karol Nawrocki, this fine was set at 20 million zloty, approximately $5.5 million.
Political uncertainty is not entirely over
Nevertheless, the political risks facing the law have not completely disappeared. President Nawrocki previously vetoed two crypto regulatory bills supported by the Tusk government. Nawrocki argued that these proposals placed an excessive burden on crypto companies and could drive firms out of Poland. The government bill passed on Friday was one of four different cryptocurrency proposals that began being debated in the Sejm on Tuesday, May 12. The other proposals were reportedly submitted by Nawrocki, the Poland 2050 Party, and the Confederation Party.
Additionally, a separate proposal submitted by four MPs from the Law and Justice Party aims to completely ban cryptocurrency activities in Poland. However, Sejm President Włodzimierz Czarzasty stated that this ban proposal would only be considered after work on the four main regulatory bills is completed.
A New Era for the Crypto Market in Poland
Poland's MiCA compliance process stands out as part of a broader transformation in Europe where the crypto sector is being brought to a more regulated footing. The Zondacrypto investigation revealed why this process is considered more urgent within the country. The law could introduce clearer rules for crypto companies, but it could also increase compliance costs for the sector. Therefore, the debate in Poland is progressing along two main axes: protecting users and reducing the risk of illicit financing on one side, and the possibility of innovative companies leaving the country on the other.
