Cryptocurrencies, with their novel solutions and ability to upend established financial structures, have radically altered the industry. Due to the exponential growth of the cryptocurrency market, an increasing number of businesspeople and investors are entering the space. Centrally located in Europe, Poland has become a hotbed for blockchain technology and cryptocurrency entrepreneurs.
Polish Cryptocurrency Law and Policy
There are presently no rules in place in Poland that are primarily geared at the crypto-market, making it difficult to get information on the legal framework around cryptocurrencies in the country. It is important to remember, however, that virtual currencies are covered by the rules of the Polish Anti-Money Laundering (AML) Act. Organizations that engage in virtual currency operations fall within the definition of “obliged entities” under the AML Act and must comply with its provisions. You may also be subject to the requirements of other legislative acts, depending on the nature of the future actions you plan to do.
Businesses dealing in virtual currency must thus get a crypto license from the appropriate registry. By adhering to these AML rules, Polish cryptocurrency enterprises may ensure a solid legal footing and fulfill their legal responsibilities. Get fintech lawyers help from Fintech Harbor Consulting if you are experiencing difficulties
According to Polish legislation, what exactly is “virtual currency”?
The AML/CFT Act defines “virtual currency” under Polish law. The Act defines numerous key terms that are necessary for comprehending the existing legal standing of cryptocurrencies in Poland. The interesting choice made by the drafters of the laws was to define virtual currency by excluding other things.
According to the statute, we find that:
Value is represented in virtual money by digital means, but it is not:
- legal tender issued by the National Bank of Poland, foreign central banks, or other governmental agencies,
- a standardized measure of value used by nations that are members of or partners with the international body that devised it.
- electronic currency under the meaning of the Payment Services Act of August 19, 2011, in Poland.
- a financial instrument under the meaning of the Polish Act on Trading in Financial Instruments, which came into effect on July 29, 2005
- a check or a promissory note.
The Polish AML Act’s definition of virtual currency is based on the 5th AML/CFT Directive, which was implemented in Poland. Virtual currencies are defined here as digital indications of value that are neither issued nor backed by any government. They lack the constitutional protections afforded to money and are not pegged to any one national currency. Electronic transmission, storage, and sale all contribute to their widespread acceptance as a medium of trade by both natural and legal persons.
Who may legally begin working with cryptocurrency in Poland?
After signing up for the proper registry, any business owner, whether a person or a corporation, may engage in activities using virtual money.
The cryptocurrency business regulations in Poland
There are two primary prerequisites for obtaining a crypto license:
- criminal background check
- familiarity with the virtual currency industry is all must.
There is no need to submit a criminal history record in order to apply for a cryptocurrency license in Poland; instead, applicants in this category need just sign an affidavit of clean criminal history in order to do so.
Similar to the need for relevant knowledge or experience, the signature of the relevant statement is acceptable if no supporting documentation are sent with the application. This need for familiarity or experience is met if and only if:
- successful completion of an educational program or seminar addressing the law and business of virtual currencies
- carrying out, as shown by appropriate paperwork, activities relating to virtual currency-related activities for a minimum of one year.
In addition to the above, you must meet the following criteria before your application for registration may be accepted:
- fill in the Company Name or Your Name and Last Name,
- make sure to include your NIP (Polish Tax ID)
- specify your intended virtual currency business service.
- be able to provide a valid electronic signature or a Polish Trusted Profile
