Polish Crypto Bill Faces Backlash Over $6 million Fines

- Industry players criticize Poland’s draft bill aligning crypto regulations with EU's MiCA framework. - Experts warn stringent requirements may drive startups abroad, stifle innovation. On June 26, 2025, Cryptopolitan reported that Poland’s Ministry of Finance unveiled a draft bill. This bill seeks to regulate the country's cryptocurrency market under the EU’s Markets in Crypto Assets (MiCA) framework; however, while the legislation aims to provide regulatory clarity, it has incited significant concerns within Poland’s crypto community. These concerns are fueled by strict requirements and high compliance costs, potentially jeopardizing the growth of domestic cryptocurrency firms. Under the proposed law, the Financial Supervision Authority (KNF) would gain regulatory oversight to monitor crypto exchanges and token issuers. These entities must meet rigorous reporting obligations and submit extensive documentation. Additionally, they risk hefty annual penalties up to PLN 22 million (approximately $6 million), which critics state exceed those levied on traditional banks. Furthermore, the FinTech Poland Foundation for Financial Innovation has lambasted the draft for granting sweeping supervisory powers, stating the requirements are overly burdensome for crypto companies. The cost to acquire and maintain a crypto asset service provider (CASP) license is a significant point of contention. Local analysts estimate initial costs near PLN 500,000, and these costs are compounded by steep monthly expenses and lengthy approval processes, which could stretch up to two years. Consequently, Prof. Krzysztof Piech, a respected Polish economist, warns that many firms will likely seek licenses abroad, potentially leaving the law with few entities to monitor and possibly reducing tax revenue for the Polish government. Critics assail the draft bill's provisions, arguing they stifle innovation and erect barriers to entry for startups. As a result of these challenges, several Polish crypto companies are considering relocating their operations overseas. This consideration, in turn, increases apprehension about the domestic industry's prospects, especially as the global regulatory landscape rapidly shifts. On June 26, President-elect Karol Nawrocki, who will assume office in August 2025, voiced strong criticism of the legislation, describing the measures in public statements as "murderous" to Poland’s aspirations for technological advancement. He emphasized in these statements, "Innovations must be created in Poland, not regulations." Despite this opposition, however, Poland's parliament appears poised to approve the bill, which would further amplify concerns about legal and operational uncertainty for crypto businesses in the country. According to CoinMarketCap on June 26 at 12:00 UTC, Bitcoin (BTC) was trading at $30,456, reflecting a 1.8% decrease in its 24-hour trading volume. Meanwhile, Ethereum (ETH) was trading at $1,887, showing a 0.7% uptick in its 24-hour trading volume.