After several years of not officially recognizing cryptocurrencies, the Polish Financial
Supervision Authority (KNF) plans to start supervising digital assets by the
end of this year. As Finance Magnates learned, the Polish government plans to
present a bill on this matter in the second quarter of this year.
For the
local industry, this means finally setting clear legislative frameworks, and
the KNF will have the opportunity to impose financial penalties on companies in
the cryptocurrency sector.
According
to reports from Polish media, the move is not proactive but rather a response
to European regulations on cryptocurrency markets that came into effect in May
of last year.
“The
introduction of new regulations is dictated by the need to prepare a legal
framework for the proper functioning of crypto asset markets, thereby ensuring
effective supervision and investor protection by equipping the Financial
Supervision Authority with the appropriate means,” the official comment from
the Polish government stated.
The first
steps towards regulating the cryptocurrency market appeared in 2020. Over the
past few years, the digital asset market in Poland has not had specific legal
frameworks; only its tax status has been regulated. In the meantime, the KNF
repeatedly warned investors about the excessive risk associated with investing
in digital assets.
What
changes can Polish crypto enthusiasts and local cryptocurrency companies
expect? The proposed regulations suggest as many as seven significant changes.
KNF Will Be Able to
Penalize Cryptocurrency Companies
Poland aims
to more closely regulate crypto activities by designating the KNF as the
supervising body and introducing stricter rules that crypto companies must
follow:
- The
main regulator for crypto in Poland will be the KNF. It will oversee new crypto
regulations. - Companies
issuing crypto coins or providing crypto services will need to report their
activities to the KNF. The KNF will check if they are following the rules. - If
crypto companies break the new regulations, the KNF can take action against
them. This includes imposing fines or penalties. - There
will be stricter rules about criminal penalties for crypto companies that break
laws. This is to protect consumers and investors better. - The
regulations also cover confidentiality rules about the information crypto
companies obtain from their customers. - Some
provisions will allow crypto companies to use electronic contracts and
statements. These will have the same legal validity as paper documents.
Thus, Poland will
join the growing group of European countries where local supervisory
commissions regulate the cryptocurrency market. Among
them is the British FCA, which presented fresh guidance in November amidst
crypto marketing turmoil in the country.
After several years of not officially recognizing cryptocurrencies, the Polish Financial
Supervision Authority (KNF) plans to start supervising digital assets by the
end of this year. As Finance Magnates learned, the Polish government plans to
present a bill on this matter in the second quarter of this year.
For the
local industry, this means finally setting clear legislative frameworks, and
the KNF will have the opportunity to impose financial penalties on companies in
the cryptocurrency sector.
According
to reports from Polish media, the move is not proactive but rather a response
to European regulations on cryptocurrency markets that came into effect in May
of last year.
“The
introduction of new regulations is dictated by the need to prepare a legal
framework for the proper functioning of crypto asset markets, thereby ensuring
effective supervision and investor protection by equipping the Financial
Supervision Authority with the appropriate means,” the official comment from
the Polish government stated.
The first
steps towards regulating the cryptocurrency market appeared in 2020. Over the
past few years, the digital asset market in Poland has not had specific legal
frameworks; only its tax status has been regulated. In the meantime, the KNF
repeatedly warned investors about the excessive risk associated with investing
in digital assets.
What
changes can Polish crypto enthusiasts and local cryptocurrency companies
expect? The proposed regulations suggest as many as seven significant changes.
KNF Will Be Able to
Penalize Cryptocurrency Companies
Poland aims
to more closely regulate crypto activities by designating the KNF as the
supervising body and introducing stricter rules that crypto companies must
follow:
- The
main regulator for crypto in Poland will be the KNF. It will oversee new crypto
regulations. - Companies
issuing crypto coins or providing crypto services will need to report their
activities to the KNF. The KNF will check if they are following the rules. - If
crypto companies break the new regulations, the KNF can take action against
them. This includes imposing fines or penalties. - There
will be stricter rules about criminal penalties for crypto companies that break
laws. This is to protect consumers and investors better. - The
regulations also cover confidentiality rules about the information crypto
companies obtain from their customers. - Some
provisions will allow crypto companies to use electronic contracts and
statements. These will have the same legal validity as paper documents.
Thus, Poland will
join the growing group of European countries where local supervisory
commissions regulate the cryptocurrency market. Among
them is the British FCA, which presented fresh guidance in November amidst
crypto marketing turmoil in the country.
