Poland Pushes Harsh Crypto Bill Despite Growing Public Backlash

Parliament Moves Forward

Poland’s lawmakers approved the Crypto-Asset Market Act in the Sejm, the lower house. The bill now heads to the Senate for review.

Strict Licensing Rules

Bill 1424 introduces mandatory licenses for crypto service providers. This covers exchanges, issuers, and custody platforms. The KNF, Poland’s financial watchdog, will oversee the process.

To apply, companies must provide corporate details, risk policies, AML procedures, and proof of capital. Non-compliance could mean a ban from operating in Poland.

Heavy Penalties Raise Alarm

Violations could bring fines up to 10 million zlotys ($2.8M) and even two years in prison. The law mirrors the EU’s MiCA framework but critics say it goes too far.

Industry Backlash

Janusz Kowalski, an opposition lawmaker, blasted the 118-page bill as “overregulation.” He warned it could wipe out Poland’s crypto market and hurt its 3 million users.

Tomasz Mentzen, a blockchain supporter, called the KNF the “slowest regulator in the EU.” He argued the new rules would choke innovation and delay blockchain adoption.

Political Tensions

The debate comes as Poland’s new president, Karol Nawrocki, promised to defend crypto. During his campaign, he pledged to block “tyrannical regulations” and protect innovation.