Polish Crypto Firms Brace for Impact as New Regulatory Bill Looms in 2025

• Why Are Polish Crypto Firms Threatening to Leave?
• How Does the Bill Raise Barriers for Startups?
• Will Poland’s President Block the Legislation?
• What’s Next for Poland’s Crypto Industry?
• FAQ: Poland’s Crypto Regulation Crisis

Poland’s cryptocurrency industry faces a pivotal moment as the government advances a controversial regulatory bill in 2025. While the legislation aims to align with the EU’s Markets in Crypto-Assets (MiCA) framework, local businesses warn of "draconian" rules that could force startups to relocate. The bill grants sweeping powers to Poland’s Financial Supervision Authority (KNF), including hefty fines and stringent reporting requirements. Critics argue the law disproportionately targets small firms, with licensing costs exceeding 500,000 złoty ($120,000) and approval timelines stretching two years. Meanwhile, President-elect Nawrocki vows to veto the bill, calling it a threat to innovation. This clash highlights the tension between regulatory clarity and entrepreneurial freedom in Europe’s evolving crypto landscape. ---

Why Are Polish Crypto Firms Threatening to Leave?

The proposed bill, drafted by Poland’s Ministry of Finance, has sparked backlash for its stringent oversight measures. crypto exchanges and token issuers must submit exhaustive operational details to the KNF, which can impose fines up to 22 million złoty ($6 million)—higher penalties than those faced by traditional banks. Industry groups like the Fintech Poland Foundation argue these rules create an "unfair burden," particularly for startups. For context, MiCA’s EU-wide framework allows smaller firms to operate under lighter regimes during a transitional period, but Poland’s version lacks such flexibility. Local media report that entrepreneurs are already exploring jurisdictions like Malta or Estonia, where licensing is faster and cheaper.

How Does the Bill Raise Barriers for Startups?

Professor Krzysztof Piech, a Polish economist, breaks down the financial hurdles: Obtaining a Crypto Asset Service Provider (CASP) license requires ~500,000 złoty upfront, plus 30,000–40,000 złoty monthly compliance costs. Applicants must also prepare ~1,000 pages of documentation and wait up to two years for approval. "Every entity I’ve spoken to plans to seek licenses abroad," Piech told Gazeta Wyborcza. The bill’s critics warn it could backfire—driving talent and tax revenue overseas while leaving only large, regulated players in Poland. A leaked draft even revealed a now-scrapped proposal to tax local crypto exchanges 0.5% of revenue, versus a flat $5,000 fee for foreign platforms.

Will Poland’s President Block the Legislation?

President-elect Andrzej Nawrocki, set to take office in August 2025, has pledged to veto the bill, calling its provisions "murderous regulations." In a May 2025 tweet, he asserted: "Innovations must be created in Poland, not regulations." However, the Sejm (lower parliament) and Senate are expected to pass the bill with majority support. If Nawrocki follows through, the legislation WOULD return to lawmakers for revisions—a process that could delay MiCA implementation in Poland beyond the EU’s 2026 deadline. Legal analysts note that a presidential veto can be overridden by a three-fifths parliamentary vote, setting the stage for a constitutional showdown.

What’s Next for Poland’s Crypto Industry?

The bill’s fate hinges on three factors: Nawrocki’s veto power, potential EU scrutiny of Poland’s "gold-plating" of MiCA rules, and industry lobbying efforts. Some firms are preparing contingency plans, such as establishing subsidiaries in MiCA-compliant EU countries. Others hope for amendments to reduce compliance costs. Meanwhile, the KNF defends the bill as necessary to prevent fraud, citing Poland’s 2024 surge in crypto-related scams. Regardless of the outcome, the debate underscores a global challenge: balancing consumer protection with the decentralized ethos of cryptocurrency.

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FAQ: Poland’s Crypto Regulation Crisis

What penalties do crypto firms face under the new bill?

The KNF can impose annual fines up to 22 million złoty ($6 million) for non-compliance, exceeding penalties for banks.

How does Poland’s bill differ from the EU’s MiCA framework?

Poland added stricter reporting rules, higher licensing fees, and extended approval timelines beyond MiCA’s baseline requirements.

What alternatives are Polish crypto firms considering?

Many plan to register in jurisdictions like Lithuania or Cyprus, where licensing costs are lower and processes take weeks, not years.