Poland Faces Backlash Over Strict New Cryptocurrency Regulations
Warsaw, Poland – Poland is bracing for a political showdown over newly implemented cryptocurrency regulations, described by one lawmaker as the most restrictive in the European Union. The rules, designed to enact the EU’s Markets in Crypto-Assets (MiCA) framework, have sparked criticism from within the Polish goverment and the crypto community, raising concerns about stifling innovation and potentially criminalizing aspects of the burgeoning industry.
The controversy centers on the scope and severity of the Polish implementation of MiCA, which critics argue goes far beyond the EU directive’s intent. deputy Janusz Kowalski warned the regulations could lead to imprisonment for individuals involved in cryptocurrency innovation, a claim fueling anxieties among developers and investors. Poland’s version of the law substantially exceeds the length of similar regulations in other European nations-ranging from a single page in Cyprus to 78 pages in Germany-according to Kowalski.
The regulations place the Polish Financial Supervision Authority (KNF) as the primary regulator for the crypto market, a decision drawing fire from politician Tomasz Mentzen. Mentzen pointed to the KNF’s notoriously slow processing times-averaging 30 months for application reviews-as a major impediment to growth. Both Mentzen and Kowalski have publicly called on President Karol Nawrocki to veto the bill.
Kowalski has pledged to present a more “rational implementation of MiCA” in October, should the veto succeed. Meanwhile, Mentzen argues that a revised framework is needed to foster, rather than destroy, Poland’s crypto asset market. The debate echoes earlier proposals during the presidential election, when Sławomir Mentzen, brother of Tomasz, campaigned on a platform that included establishing a national bitcoin reserve.
