Poland Proposes 5-Year Prison Terms for Crypto Offenders

* Harsh penalties proposed for unlicensed crypto service providers. * Critics fear stifled innovation and harm to Poland's Web3 sector. Polish lawmakers have introduced a proposal to impose severe penalties on unlicensed cryptocurrency service providers as part of the country's effort to align with the European Union’s Markets in Crypto-Assets (MiCA) regulation. Brought forward by three Civic Platform party members—Joanna Frydrych, Dorota Marek, and Krystyna Skowrońska—the amendment suggests fines up to PLN 5 million (approximately $1.4 million) and prison terms ranging from six months to five years. The proposal, announced on September 15, 2025, was met with sharp criticism from Poland's crypto community, as industry participants argue that such stringent measures could hinder innovation in the burgeoning Web3 sector and place excessive burdens on domestic crypto businesses. Critics also expressed concern that the legislation's vague language might inadvertently penalize individuals engaged in non-commercial activities, such as educating about cryptocurrencies or issuing non-fungible tokens (NFTs). The draft law reflects ongoing tension in Poland’s crypto industry over MiCA compliance costs. In August 2025, industry insiders warned that high operational expenses from regulatory requirements could force up to 90% of the country's crypto exchanges to shut down. In addition, critics raised concerns that certain provisions, such as a controversial 0.5% fee on revenues from local crypto trading platforms, exceed the EU’s baseline requirements. While the legislation seeks to align Poland with broader European crypto standards, its potential impact on the domestic market remains a contentious issue.