- Poland’s new cryptocurrency law imposes strict KNF licensing and heavy penalties.
- The industry warns the rules could stifle innovation and push companies abroad.
- The president’s decision may determine the future of Poland’s crypto market.
Poland is moving toward adopting one of the strictest cryptocurrency laws in Europe, prompting sharp criticism from industry leaders and sparking intense political debate.
The legislation, an interpretation of the European Union’s Markets in Crypto-Assets (MiCA) regulation, aims to strengthen oversight and protect investors. However, it has raised concerns that the rules could hinder innovation and drive businesses to relocate overseas.
Tighter rules take center stage
The Polish lower house, the Sejm, approved the Draft Act on the Crypto-Assets Market (Bill No. 1424) on September 26, with 230 votes in favor, 196 against and no abstentions.
The bill now awaits review in the Senate. If passed, Poland would become one of the most tightly regulated crypto jurisdictions in the EU.
Under the proposed framework, the Polish Financial Supervision Authority (KNF) would act 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 align with the new rules, but breaches could result in fines up to 10 million zlotys (about $2.8 million) or prison sentences of up to two years.
Supporters of the bill, led by Civic Coalition rapporteur Krystyna Skowrońska, argue the law is necessary to protect investors, stabilize a fast-growing digital asset market and ensure compliance with EU standards.
They say it will lend legitimacy to a sector often criticized for opacity and will protect Poland from potential systemic financial risks.
Industry voices warn of an exodus
Critics counter that Poland’s approach goes well beyond what MiCA requires.
Przemysław Kral, CEO of European crypto exchange Zondacrypto, called the legislation a “big step backward,” arguing it treats cryptocurrencies more like a threat than an opportunity.
He noted that the new rules could criminalize basic activities such as smart contract development, discouraging talent and investment in the country.
Industry insiders fear the strict licensing and regulatory requirements, combined with the KNF’s notoriously slow approval process—which averages around 30 months—will push startups and smaller operators to base themselves abroad.
Kral pointed to Zondacrypto’s own experience: although founded in Poland, the company is regulated in Estonia and pays more than €6 million annually in VAT-like charges there.
Such relocations could cost Poland jobs, tax revenue and the opportunity to cultivate a thriving digital economy.
Prominent Bitcoin advocate Dominik Fel echoed those concerns, warning that Poland risks becoming a “museum of innovation” if the legislation 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.
We appeal to the President @NawrockiKn for a veto! The government is pushing a law that will destroy the cryptocurrency market in Poland!
Confederation submitted more than 100 amendments to this bill. All were rejected! @SlawomirMentzen from the parliamentary podium tore the government’s narrative apart! pic.twitter.com/OvIhPsPCYZ
— Krzysztof Rzońca (@KrzysztofRzonca) September 24, 2025
Poland’s political divide shapes the debate
The vote exposed deep political divisions.
The Civic Coalition, Poland 2050-TD, PSL-TD, Left and Together supported the bill, while Law and Justice (PiS), Confederation and the Republicans opposed it.
PiS announced plans to draft a lighter alternative aligned with other EU frameworks, which it intends to present at its congress in late October.
Analysts suggest President Nawrocki’s decision will be pivotal for Poland’s future in digital assets.
While the president does not personally hold cryptocurrencies, libertarian and pro-Bitcoin groups that backed 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 oversight or risks suppressing innovation and losing its emerging digital economy to more welcoming jurisdictions.