June 26, 2025-The Polish government submitted a draft law on the market of crypto assets to the Chamber of Deputies (lower house of the Polish parliament).

The bill aims to implement MiCA at the national level and fundamentally reshape the cryptocurrency market landscape in Poland. The bill proposes to replace the current VASP registration system with the CASP licensing system and to designate the Polish Financial Supervision Authority (KNF) as the competent authority. This marks a shift from a loose registration model to a highly regulated system and the introduction of detailed capital, governance and compliance requirements.

September 26, 2025-After months of parliamentary deliberation, the Sejm passed the bill and sent it to the Senate, the upper house of the Polish parliament.

At this stage, the government positioned the bill as a necessary measure to bring Polish law into line with EU requirements and to strengthen investor protection.

November 7, 2025-After adopting a partial Senate amendment, the House of Representatives passes the final version and sends it to the President for his signature.

At this time, serious divisions within the Polish crypto industry were exposed. Some market participants (e. g. AIBC, AIO Systems, Arison, Billon Solutions, Bihub) called on the President to veto the bill, pointing out that Poland's implementation of the Crypto Asset Market Regulation (MiCA) far exceeds the minimum requirements of EU law and constitutes excessive regulation.

At the same time, some companies have launched actions to urge the president to sign the bill. For example, XTB said: "The discussion on the specifics of the Polish crypto asset market bill ended a year ago. At this stage, the risk to Polish companies and investors from the absence of the law is far greater than the possible imperfection of the provisions."

December 2, 2025-Poland's president refuses to sign the crypto-asset bill.

Objections include opaque online domain name blocking mechanisms, lengthy and complex legislative structures compared to other EU jurisdictions, and regulatory costs that may hinder the development of small and medium-sized enterprises and start-ups.

December 3, 2025-The House of Representatives fails to override President Karol Nawrocki's veto.

The issue then escalated into a political controversy. Prime Minister Donald Tusk announced that the government would try again to pass legislation and position it as a key move to protect investors, safeguard national security and effectively regulate markets vulnerable to abuse.

9 December 2025-The Government published a "new/old" version of the draft bill on the Government Legislation Centre website. Despite expectations of a compromise, the text was fully consistent with the vetoed version, significantly increasing the likelihood of another presidential veto.

Dec. 18, 2025-Despite facing a presidential veto and harsh criticism from the opposition, the government has submitted an unamended draft of the Crypto Asset Markets Bill for the second time. During the last session of the Sejm of the current year, the first reading of the legislation aimed at implementing EU regulations and placing the market under the supervision of the Polish Financial Supervisory Authority (KNF) was completed. "We are submitting the same draft bill again because we think its current wording is the most appropriate," Deputy Treasury Secretary Jurand Drop said on the House floor.

December 19, 2025-The Polish House of Representatives passes the 2.0 Law on Crypto-Assets.

The majority of members voted in favor. The Chamber of Deputies (Sejm) simultaneously passed an amendment proposed by a Polish 2050 (political party) member.

However, the Polish 2050(Polska 2050) initially proposed broad amendments aimed at avoiding over-regulation. In the end, only one of the amendments was passed.

The amendment reduces the maximum annual regulatory fees that token issuers have to pay to the Polish Financial Supervisory Authority (KNF).

Other proposed amendments aimed at eliminating over-regulation of the bill were rejected. The adopted amendment aims to significantly reduce the cost of crypto token issuers, and is particularly important for start-ups that want to use tokens as a way of financing.

According to the amendment (Section 79 (1) of the Act), the maximum regulatory rate for token issuance is 0.1 percent instead of 0.5 percent. This refers to the ceiling. The actual cost will depend on the financial liability arising from the issuance of the token, but may not be less than 500 euros.

As a result, the amendment lowers the barrier (fees) for small entities (especially start-ups) to enter the crypto-asset market. The remaining amendments proposed by the Polska 2050 failed to gain majority support in Sejm, although they were aimed at easing the regulatory framework. In vetoing the original bill, President Carol Navrotsky argued that it constituted excessive regulation.

The 2.0 version is almost identical to the 1.0 version and thus fails to address the flaws the president pointed out when he vetoed the original bill. The 2.0 Act, however, still needs to be approved by the Senate.

Next, Speaker Sejm sends the passed bill to the Senate. In the Senate, the bill will be considered by the relevant special committees, followed by debate and voting in the plenary. The Senate can pass a resolution that chooses to pass without amendments (and send it to the President for signature), veto it all, or propose amendments (and return the bill to Sejm).

The bill will go to the president for his signature only after Sejm accepts or vetoes the Senate amendment. The whole process could take months, and the most worrying thing is that the current version of the bill will most likely fail to get President Navrotsky's signature again.

Where does Poland surpass MiCA?

At the heart of the dispute is not MiCA itself, but how it is implemented at the national level in Poland. Several provisions in the draft law on crypto-asset markets introduce requirements that go beyond the minimum standards of EU law and are not consistently applied by other members.

Regulatory fees are higher than EU practice: The Polish draft introduces ongoing regulatory fees on a pro rata basis, placing a disproportionate burden on smaller CASP and token issuers, particularly in comparison to many other EU jurisdictions.

Criminal Liability Beyond MiCA Minimum Requirements: The Act significantly increases compliance and personal risk for CASP management by bringing into criminal liability conduct originally regulated by MiCA through administrative sanctions.

Domain blocking mechanism not provided for by MiCA: The Act authorizes the competent authorities to block network domains in the absence of sufficient procedural transparency, and such tools are not explicitly required or uniformly regulated in MiCA.

Excessive localization of personnel and functions: The requirement to have key personnel and operational functions located in Poland goes beyond the requirements for MiCA's presence at EU level and could undermine the freedom to provide services across the EU.

Therefore, the core problem is not the MiCA itself, but the excessive implementation at the national level in Poland, which may weaken competitiveness, disincentive start-ups, and prompt market participants to move to other EU jurisdictions.

What Changes Does the Draft Crypto Asset Market Act Actually Bring?

Before the MiCA came into effect, Poland's regulatory framework for crypto-asset activities was relatively simple. Legitimate operations only require registration in the VASP register, which is managed by the Director of the Tax Administration in Katowice (Katowice). As long as the application data is filled in correctly, the registration can be completed within two weeks. This relaxed regulatory regime was applied until December 30, 2024, when MiCA became fully applicable across the EU and fundamentally changed the regulatory landscape of the crypto market.

The draft law on the market of crypto assets in Poland aims to translate the MiCA into domestic law and replace the current VASP model with a comprehensive CASP licensing system. Under the new framework, crypto asset service providers will no longer need to simply register, but will have to obtain full regulatory authorization and be subject to ongoing supervision by the Polish Financial Supervisory Authority (KNF). In practice, this means moving from administrative access to prudential regulation similar to that applied in traditional financial markets.

In particular, despite the direct applicability of the MiCA, the draft law in Poland has not yet entered into force. Therefore, the old VASP rules are still valid in form, but at the same time the CASP application cannot be submitted. This legal vacuum is one of the most problematic aspects of the current situation and a major source of uncertainty for market participants.

The draft introduces a transition period for entities that are already registered in the VASP register or provide crypto asset services by December 29, 2024. These entities may continue to operate for four months, or up to nine months, after the entry into force of the new law, provided that a completed CASP application is submitted to KNF and duly accepted within three months. For new market entrants without existing VASP registration, the draft leaves no flexibility: a CASP license must be obtained from day one.

According to MiCA and the Polish draft, CASP licenses can be granted to companies authorized under Article 63 of MiCA (most commonly limited liability companies or joint stock limited companies), or certain regulated financial institutions, such as banks, investment companies, electronic money institutions or fund managers; The latter can provide encrypted asset services under Article 60 of MiCA without obtaining a separate CASP license.

The authorization requirement constitutes a significant shift from previous practice in Poland. The applicant must have a registered office in an EU Member State and carry out at least part of its business activities there. Management must be physically based in the EU and at least one member of the Board must reside in the EU. Applicants must also meet the minimum capital threshold, submit extensive internal documentation, and demonstrate that their regulatory body is reputable, has no relevant criminal record, and has sufficient knowledge and experience in the crypto asset market as a whole.

The range of documents required to apply for a CASP includes, but is not limited to, a detailed business plan, evidence of compliance with prudential safeguards, a description of the corporate governance structure, risk management and anti-money laundering/counter-terrorist financing (AML/CFT) procedures, information and communication technology (ICT) systems and information security measures, asset segregation mechanisms, and a grievance handling process. Depending on the specific services provided (e. g., asset custody, trading platform operations, exchange services, or crypto asset advisory and portfolio management), additional policy documents are required.

The bill places special emphasis on the role of the management board. According to the Crypto Asset Market Regulation (MiCA) and the European Securities and Markets Authority (ESMA), board members must not only demonstrate integrity, but also demonstrate sufficient time commitment and overall professional competence. The composition of the board should match the size and complexity of the business, usually consisting of at least two members, and the CEO is expected to devote all his professional time to the management of the Crypto Asset Service Provider (CASP). In addition, the Polish Financial Supervisory Authority (KNF) is expected to take a more stringent vetting stance against persons with significant ties to Russia or Belarus, in line with its previous regulatory resolutions.

The draft bill also imposes stringent requirements on shareholders and key employees. Shareholders holding qualified holdings must demonstrate a good reputation and provide a transparent ownership structure. CASP must employ suitably qualified personnel and have a robust organizational structure, including risk management, compliance and AML functions, internal audit, IT and incident management, and key personnel must be based in Poland and readily accessible to regulatory authorities.

The licensing process itself has been institutionalized and has a time limit. The application must be submitted to KNF and a fixed fee of 4,500 euros must be paid. The KNF then conducts an integrity review and a substantive review, during which additional documentation may be required. Although MiCA has a formal deadline, the process may be extended in practice due to the complexity of the evaluation and administrative round-trip.

MiCA distinguishes three types of CASP licenses depending on the scope of services and the required capital, with a capital threshold between € 50,000 and € 150,000. The Polish draft does not adjust these barriers. In addition, CASP will be subject to ongoing regulatory fees calculated as a percentage of average revenue, which has been widely criticized for its potential impact on smaller market participants. Finally, the draft introduces a strict sanctions regime. Operating without a CASP licence, breaching professional confidentiality obligations, or making misleading claims of regulated status can result in high fines and, in some cases, criminal liability. These provisions are one of the most controversial elements of the bill and a significant reason for the presidential veto.

Overall, the draft bill represents a profound transformation of the Polish crypto market, clearly moving the industry from a registration-based model to comprehensive financial regulation. Whether this transformation will eventually be implemented in its current form is still uncertain, but its impact on companies and investors has begun to reshape the strategic decisions of the entire market.

Regulatory vacuum: MiCA is applied, but domestic law is not yet in place

Since 30 December 2024, MiCA has been directly applicable throughout the European Union, including Poland. However, due to the lack of an effective national-level implementation act, the Polish crypto market is currently in a regulatory vacuum.

While existing crypto asset service providers can continue to operate under the old VASP registration, it is not yet possible to obtain a new CASP license in Poland. Thus, MiCA is formally applied, but its enforcement mechanism at the national level is still incomplete.

New entrants cannot legally enter the market: Since KNF has not yet opened CASP licensing, new crypto companies cannot enter the Polish market through standard authorization procedures.

Mergers and acquisitions become the only viable way to enter: The acquisition of a registered VASP becomes the only practical way to enter the Polish market, significantly increasing the cost and legal complexity of entry.

Grey structures and the growth of out-of-EU/cross-border licensing: Long-term uncertainty has prompted operators to use licences from other EU countries, engage in regulatory arbitrage, and adopt informal operating structures that weaken local regulation and investor protection.

This situation weakens legal certainty, distorts the playing field and puts Poland at a disadvantage compared to EU jurisdictions that have implemented MiCA through a clear and operational national framework.

The current state of the Polish crypto market

Since 30 December 2024, MiCA has been directly applicable throughout the European Union, including Poland. However, Poland is still in a transitional phase due to the lack of an implementing act at the national level. Crypto-asset services are still available under the existing VASP registration until June 30, 2026, but new registrations are no longer possible. This creates a regulatory paradox: markets are open in theory, but closed in practice to new entrants unless they acquire a registered entity.

From an investor's point of view, this raises concerns. Until the end of the transition period, many service providers will continue to operate under MiCA's pre-standard standards, which are significantly lower than expected under the new system. Even if national laws are passed quickly, the complexity of the CASP licensing process means that not all established entities can obtain authorization in a timely manner.

After 30 June 2026, investors will need to ensure that the entity they use holds a valid CASP licence issued by an EU Member State. In particular, the actual enforcement of the investor's rights will depend on the jurisdiction in which the licence is issued.