Poland Pushes Forward Harsh Crypto Bill Sparking Nationwide Backlash

Poland is moving ahead with one of Europe’s toughest crypto laws, igniting anger across the country’s digital asset community. On Friday, lawmakers in the Sejm, Poland’s lower house of parliament, approved the Crypto-Asset Market Act, sending it to the Senate for review.

Known as Bill 1424, the legislation aligns with the European Union’s MiCA framework but goes further with sweeping restrictions. It requires all crypto asset service providers — including exchanges, issuers, and custody platforms, both local and foreign — to obtain a license from the Polish financial watchdog, the Komisja Nadzoru Finansowego (KNF). Applicants must submit detailed documentation on company structure, capital reserves, risk management, AML procedures, and compliance systems.

The law introduces criminal penalties for violations, including fines of up to 10 million Polish zlotys ($2.8 million) and prison terms of up to two years. Companies will have six months to comply or risk being shut down.

The bill passed with 230 votes in favor and 196 against, triggering outrage from crypto advocates. Critics warn the law could devastate Poland’s market, home to an estimated three million crypto holders. Opposition MP Janusz Kowalski called it “the largest and most restrictive cryptocurrency law in the EU,” slamming its 118 pages of “overregulation” compared to shorter frameworks in Germany and the Czech Republic.

Blockchain supporter Tomasz Mentzen also raised concerns, pointing out that the KNF is the “slowest regulator in the EU,” often taking years to process applications. He warned the law could lead to the “destruction of blockchain and stablecoins” in Poland.

President Karol Nawrocki, elected in June after promising to protect innovation, previously vowed to oppose “tyrannical regulations.” His response to the bill will determine whether Poland clamps down on crypto or protects its growing market.