- A new Polish crypto law imposes strict KNF licensing and heavy penalties.
- The industry warns the rules could stifle innovation and drive firms abroad.
- The president’s decision could determine the future of Poland’s crypto market.
Poland is poised to adopt one of the toughest cryptocurrency laws in Europe, prompting sharp criticism from industry leaders and sparking a heated political debate.
The legislation, framed as an interpretation of the European Union’s Markets in Crypto-Assets regulation (MiCA), aims to strengthen oversight and protect investors. However, it has raised concerns that the measures could suppress innovation and push crypto businesses to relocate overseas.
Stricter rules move to the forefront
The Polish lower chamber, the Sejm, approved the Crypto Assets 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 passed, Poland would become one of the most tightly regulated crypto jurisdictions in the EU.
Under the new framework, the Polish Financial Supervision Authority (KNF) will serve as the primary regulator for all crypto-asset service providers, including exchanges, issuers and custodians, whether based in Poland or abroad.
Operators will be required to obtain a KNF license and demonstrate strong capital reserves, robust compliance systems, risk management protocols and anti-money-laundering controls.
A six-month transition period will give firms time to adapt to the new rules, but violations could result in fines of up to 10 million zloty (about $2.8 million) or criminal penalties including up to two years in prison.
Supporters of the law, led by Civic Coalition rapporteur Krystyna Skowrońska, argue the measure is necessary to protect investors, stabilize a fast-growing digital asset market and ensure alignment with EU standards.
Proponents say the law will legitimize a sector often criticized for opacity, while protecting Poland from potential systemic financial risks.
Industry voices warn of an exodus
Critics contend Poland’s approach goes well beyond what MiCA requires.
Przemysław Kral, CEO of European crypto exchange Zondacrypto, called the legislation “a big step backward,” saying it treats cryptocurrencies more as a threat than an opportunity.
He warned the new rules could criminalize basic activities such as smart contract development and could deter talent and investment from the country.
Insiders fear the combination of stringent licensing requirements and the KNF’s historically slow approval process—averaging 30 months—will push startups and smaller operators to relocate abroad.
Kral pointed to Zondacrypto’s own experience: although founded in Poland, the company chose Estonian regulation and now pays more than €6 million in VAT annually.
Such departures could cost Poland jobs, tax revenue and the chance to nurture a thriving digital economy.
Prominent Bitcoin advocate Dominik Fel echoed these concerns, warning Poland risks becoming a “museum of innovation” if the law takes effect.
Opposition politicians, including Confederation MP Krzysztof Rzońca, have urged President Karol Nawrocki to veto the bill, arguing it could dismantle the 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.
The law was backed by Civic Coalition, Poland 2050-TD, PSL-TD, the Left and Together, while Law and Justice (PiS), Confederation and the Republicans opposed it.
PiS announced plans to propose a lighter alternative modeled on other EU frameworks, intending to present it at its congress in late October.
Analysts say President Nawrocki’s decision will be pivotal for Poland’s digital asset future.
Although the president is not a personal cryptocurrency holder, libertarian and pro-Bitcoin groups that supported his election are lobbying for a more moderate regulatory approach.
The president’s choice could determine whether Poland positions itself as a leader in cautious but investor-friendly supervision, or risks stifling innovation and losing its emerging digital economy to friendlier jurisdictions.