Poland Set to Introduce Legislation for Crypto Regulation
The Polish government is actively gearing up to establish a comprehensive regulatory framework for overseeing digital assets within the country. This step is aimed at integration with the European Markets in Crypto-Assets Regulation (MiCA).
MiCA aims to provide a clear legal structure for businesses involved in the crypto and digital assets sphere, addressing areas that were previously outside the scope of existing laws. Its primary objectives include safeguarding consumers and investors, ensuring financial stability, and promoting innovation in the crypto sector. The European Council approved the adoption of these rules last year, and it is anticipated that the law’s provisions will be implemented in stages.
According to an official statement from Polish authorities, the bill is slated to be presented to the parliament in the Q2 of this year. The proposed legislation seeks to empower the Polish Financial Supervision Authority (KNF) with significantly enhanced power in the field of crypto regulation. Presently, the KNF is responsible for licensing Virtual Asset Service Providers (VASP).
As per the proposed legislation, KNF is set to assume a central role in overseeing digital assets. Similar to the UK Financial Conduct Authority (FCA) and the German Federal Financial Supervisory Authority (BaFin), the KNF will take charge of monitoring crypto operations.
Under the new bill, the KNF gains the authority to take measures against VASPs found in violation of stipulated requirements, and impose fines on violators. Additionally, the regulator will have the power to initiate legal proceedings against companies engaged in criminal activities related to cryptocurrencies.
Polish VASPs will be obliged to maintain user confidentiality and ensure a high level of customer data protection. The legislation also includes smart contracts, which have become prevalent in various industries as digital alternatives to traditional paper documents.
The KNF asserts that these enhanced powers are designed to strengthen confidence in digital assets, contribute to better regulatory oversight within the country, and provide investor safety.