Poland’s lower house of parliament, the Sejm, has approved the Crypto-Asset Market Act, sending the legislation to the Senate for review. The bill, known as Bill 1424, sets out a licensing framework for crypto asset service providers (CASPs) and brings Poland in line with the European Union’s Markets in Crypto-Assets (MiCA) regulation.
The legislation gives the country’s financial watchdog, the Komisja Nadzoru Finansowego (KNF), authority to oversee the sector. It requires exchanges, custody providers and token issuers — both domestic and foreign — to secure a KNF license before operating in Poland.
Licensing applications must include details of ownership structures, capital requirements, compliance systems, risk management, and Anti-Money Laundering (AML) policies. CASPs will be given a six-month transitional period to comply if the bill becomes law.
The bill introduces criminal liability for violations, including fines of up to 10 million zlotys ($2.8 million) and prison sentences of up to two years. The law passed with 230 votes in favor and 196 against, reflecting a deeply divided parliament.
Industry figures and opposition lawmakers warned the restrictions could devastate Poland’s crypto ecosystem, which includes an estimated three million users. Janusz Kowalski of the opposition Law and Justice (PiS) party said on X: “This is the largest and most restrictive cryptocurrency law in the EU.”
Kowalski criticized the act’s length — 118 pages — compared with much shorter bills passed in Germany and the Czech Republic, calling it “overregulation” that could stifle growth.
Concerns also center on the KNF’s pace of oversight. Tomasz Mentzen, a Polish politician and blockchain advocate, said the authority is “the slowest-acting regulator in the EU, with an average application processing time of 30 months.” He warned that such delays could lead to the “destruction of blockchain and stablecoins” in Poland if the bill is enacted without adjustments.
Mentzen called on the Senate and President Karol Nawrocki to block the legislation, arguing that a veto is necessary to protect innovation and the domestic market.
The crypto debate has spilled into Poland’s broader political arena. President Nawrocki, elected in June with 50.9% of the vote, pledged before the runoff that he would oppose “tyrannical regulations” and support crypto adoption. “In Poland, innovations must emerge, not regulations,” he said in a May 28 post on X.
Nawrocki’s remarks echoed earlier promises from Sławomir Mentzen, who campaigned on creating a national Bitcoin reserve but finished third in the first round of elections. With the bill now in the Senate’s hands, attention turns to whether Nawrocki will honor his campaign pledge by opposing the act or allow it to proceed in line with MiCA’s EU-wide rollout.
The outcome will determine whether Poland develops into a regulated crypto hub or sees its domestic market hollowed out by restrictive rules and slow-moving oversight.
