Poland advances strict crypto bill, sparking public backlash

Poland's Sejm has passed a bill regulating the crypto asset market, introducing strict measures and establishing the Komisja Nadzoru Finansowego (KNF) as the main regulatory authority. The Crypto-Asset Market Act mandates that all crypto asset service providers (CASPs) obtain a license from the KNF, a process requiring detailed applications. Critics, including politicians and industry advocates, have expressed concern that the bill's provisions could stifle Poland’s crypto market, likening it to one of the most restrictive crypto laws in the EU, with potential fines reaching 10 million zlotys ($2.8 million) and prison sentences. The KNF is criticized for its slow application processing times, averaging 30 months. Proponents of the bill argue it aligns with EU regulations, but dissenters warn that it may hinder innovation. Following the bill's approval, there are calls for the Senate and President Karol Nawrocki to veto it, with Nawrocki previously pledging support for crypto initiatives against overly restrictive regulations. The transitional period for existing CASPs to comply with the new licensing requirements is set at six months, raising further alarm about operational impacts.

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