- Poland’s new crypto law imposes strict KNF licensing and heavy penalties.
- The industry warns the rules could stifle innovation and push companies abroad.
- The president’s decision could determine the future of Poland’s crypto market.
Poland is on the verge of adopting one of Europe’s strictest cryptocurrency laws, drawing sharp criticism from industry leaders and igniting a heated political debate.
Framed as a national interpretation of the European Union’s Markets in Crypto‑Assets regulation (MiCA), the legislation aims to strengthen oversight and protect investors. Critics, however, warn it may suffocate innovation and drive crypto businesses to relocate overseas.
Stricter rules take center stage
The lower house of parliament, the Sejm, approved the Crypto Asset Market Act (Bill 1424) on September 26, with 230 votes in favor, 196 against and no abstentions.
The bill now awaits review by the Senate. If enacted, Poland would become one of the EU jurisdictions with the most stringent crypto rules.
Under the proposed framework, the Polish Financial Supervision Authority (KNF) would serve as the primary regulator for all crypto‑asset service providers — including exchanges, issuers and custodians — whether domestic or foreign.
Operators would be required to obtain a KNF license and demonstrate strong capital reserves, robust compliance systems, risk management protocols and anti‑money‑laundering procedures.
A six‑month transition period would give companies time to comply with the new rules, but violations could trigger fines of up to 10 million zloty (about $2.8 million) or prison sentences of up to two years.
Proponents of the law, led by Civic Coalition rapporteur Krystyna Skowrońska, argue the measure is necessary to protect investors, stabilize a rapidly growing digital assets market and ensure alignment with EU standards.
Supporters say the law would lend legitimacy to a sector long criticized for opacity while shielding Poland from potential systemic financial risks.
Industry voices warn of an exodus
Critics counter that Poland’s approach goes far beyond what the EU’s MiCA regulation requires.
Przemysław Kral, CEO of European crypto exchange Zondacrypto, called the legislation “a major step backward,” saying it treats crypto as a threat rather than an opportunity.
He warned the new rules could criminalize routine activities such as developing smart contracts and would discourage talent and investment from staying in Poland.
Industry sources fear that strict licensing and regulatory requirements, combined with the KNF’s notoriously slow approval process — averaging about 30 months — will push startups and smaller operators abroad.
Kral noted Zondacrypto’s own experience: although founded in Poland, the company is regulated in Estonia, where it pays over €6 million in VAT each year.
Such relocations could deprive Poland of jobs, tax revenue and the chance to nurture a thriving digital economy.
Prominent Bitcoin advocate Dominik Fel echoed these concerns, warning that Poland risks becoming a “museum of innovation” if the legislation takes effect.
Opposition politicians, including Confederation MP Krzysztof Rzońca, urged President Karol Nawrocki to veto the bill, arguing it could dismantle Poland’s domestic crypto market.
Apelujemy do Prezydenta @NawrockiKn o weto! Rząd forsuje ustawę, która zniszczy rynek kryptowalut w Polsce!
Konfederacja złożyła ponad 100 poprawek do tej ustawy. Wszystkie zostały odrzucone! @SlawomirMentzen z mównicy sejmowej rozłożył rządową narrację na łopatki! pic.twitter.com/OvIhPsPCYZ
— Krzysztof Rzońca (@KrzysztofRzonca) September 24, 2025
Poland’s political divide shapes the debate
The vote exposed deep political divisions.
Civic Coalition, Poland 2050‑TD, PSL‑TD, the Left and Together supported the law, while Law and Justice (PiS), Confederation and the Republicans opposed it.
PiS announced plans to draft a lighter alternative modeled on other EU frameworks, which it intends to present at its congress at the end of October.
Analysts say President Nawrocki’s decision will be pivotal for Poland’s digital assets future.
Although Nawrocki does not personally hold cryptocurrencies, liberal and pro‑Bitcoin groups that supported his election are lobbying for a more permissive regulatory approach.
The president’s choice could determine whether Poland positions itself as a jurisdiction that enforces prudent supervision while remaining investor‑friendly, or whether it risks stifling innovation and losing its emerging digital economy to more crypto‑friendly countries.