- Poland’s new crypto law enforces strict KNF licensing and severe 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 markets.
Poland has moved closer to adopting one of Europe’s toughest cryptocurrency laws, prompting sharp criticism from industry leaders and sparking intense political debate.
The legislation, which interprets the European Union’s Markets in Crypto-Assets (MiCA) framework, aims to strengthen oversight and protect investors. Nevertheless, critics say it risks suppressing innovation and driving crypto businesses to relocate overseas.
Tighter rules take center stage
The Polish lower house, the Sejm, approved the Crypto Asset Market Act (bill no. 1424) on September 26 by a vote of 230 in favor, 196 against and no abstentions.
The bill now awaits review by the Senate. If passed, Poland would establish one of the EU’s more stringent regulatory regimes for crypto within its jurisdiction.
Under the new framework, Poland’s financial supervisory authority (KNF) would become 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 robust capital reserves, comprehensive compliance systems, risk management protocols and anti-money-laundering procedures.
A six-month transition period gives firms time to adapt, but violations could result in fines up to 10 million zloty (about $2.8 million) or even prison sentences of up to two years.
Supporters, led by Civic Coalition presenter Krystyna Skowrońska, argue the law is necessary to protect investors, stabilize a rapidly growing digital asset market and ensure alignment with EU standards.
Proponents also say the rules will bring legitimacy to a sector often criticized for opacity while protecting Poland from potential systemic financial risks.
Industry voices warn of an exodus
Opponents argue Poland’s approach goes well beyond what the EU’s MiCA regulation requires.
Przemysław Kral, CEO of European crypto exchange Zondacrypto, described the legislation as “a big step backward,” saying it treats crypto as a threat instead of an opportunity.
He warned the new rules could criminalize basic activities such as developing smart contracts, deterring talent and investment from the country.
Industry insiders fear that the strict licensing and regulatory requirements, combined with the KNF’s historically slow approval process—averaging around 30 months—will drive startups and smaller operators to relocate abroad.
Kral highlighted Zondacrypto’s own experience: although founded in Poland, the company is regulated in Estonia, where it pays more than €6 million a year in value-added taxes.
Such moves could cost Poland jobs, tax revenue and the chance to cultivate a thriving digital economy.
Well-known Bitcoin advocate Dominik Fel echoed these concerns, warning that Poland risks becoming an “innovation museum” if the law takes effect.
Opposition politicians, including Confederation MP Krzysztof Rzońca, have urged President Karol Nawrocki to use his veto power, arguing the law could devastate the domestic crypto market.
We appeal to President @NawrockiKn to veto! The government is pushing a law that will destroy the crypto market in Poland!
The Confederation submitted more than 100 amendments to the bill. All were rejected! @SlawomirMentzen dismantled the government’s narrative from the Sejm podium! pic.twitter.com/OvIhPsPCYZ
— Krzysztof Rzońca (@KrzysztofRzonca) September 24, 2025
Political divisions shape the debate
The vote exposed deep political divides.
Civic Coalition, Poland 2050-TD, PSL-TD, the Left and Together supported the bill, while Law and Justice (PiS), Confederation and the Republicans opposed it.
PiS has announced plans to draft a lighter alternative based on other EU frameworks, which it intends to present at its congress in late October.
Analysts say President Nawrocki’s decision will be pivotal for Poland’s future in digital assets.
Although he reportedly does not personally hold cryptocurrencies, libertarian and Bitcoin-friendly groups that supported his election are lobbying for a softer regulatory approach.
The president’s choice could determine whether Poland positions itself as a cautious yet investor-friendly regulatory leader or risks stifling innovation and losing its emerging digital economy to more welcoming jurisdictions.