- Poland’s new crypto law introduces strict KNF licensing and heavy penalties.
- The industry warns the rules could stifle innovation and push firms abroad.
- The president’s decision could determine Poland’s future in the crypto market.
Poland is moving closer to adopting one of Europe’s strictest cryptocurrency laws, a development that has drawn sharp criticism from industry leaders and ignited a heated political debate.
Framed as a national implementation of the EU’s Markets in Crypto-Assets (MiCA) regulation, the bill aims to strengthen oversight and protect investors. However, critics argue it risks suffocating innovation and driving companies to relocate outside Poland.
Tougher rules in focus
The Polish lower house, the Sejm, approved the Market for Crypto Assets Act (bill 1424) on September 26, with 230 votes in favor, 196 against and no abstentions.
The bill now heads to the Senate for review. If approved, Poland would become a jurisdiction with one of the most heavily regulated crypto markets in the EU.
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 custody institutions, whether domestic or foreign.
Operators would be required to obtain a KNF license and demonstrate substantial capital reserves, robust compliance systems, risk-management protocols and anti-money-laundering procedures.
A six-month transition period would allow firms to adapt to the new rules, but violations could result in fines up to 10 million zloty (about $2.8 million) or prison sentences of up to two years.
Supporters of the legislation, led by Civic Coalition rapporteur Krystyna Skowrońska, argue the law is necessary to protect investors, stabilize the rapidly growing digital-asset market and ensure alignment with EU standards.
They say the measures will bring legitimacy to a sector often criticized for opacity while protecting Poland from systemic financial risks.
Industry voices warn of an exodus
Opponents 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 backwards,” saying it treats crypto as a threat instead of an opportunity.
He warned the new rules could criminalize basic activities such as smart contract development, deterring talent and investment from the country.
Insiders fear the strict licensing and regulatory requirements, together with the KNF’s notoriously slow approval process—averaging around 30 months—will push startups and smaller operators to relocate abroad.
Kral pointed to Zondacrypto’s own experience: although founded in Poland, the company is regulated in Estonia, where it pays more than €6 million in VAT annually.
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 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 split 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 has announced plans to draft a lighter alternative modeled on other EU frameworks, intending to present it at its congress at the end of October.
Analysts say President Nawrocki’s decision will be decisive for Poland’s digital-asset future.
Although the president reportedly does not personally hold cryptocurrencies, libertarian and pro-Bitcoin groups that backed his election are lobbying for a more permissive regulatory approach.
His choice could determine whether Poland positions itself as a cautious but investment-friendly regulator or risks stifling innovation and losing its emerging digital economy to more welcoming jurisdictions.