After many years of keeping cryptocurrencies off its official radar, the Polish Financial Supervision Authority (KNF) plans to start supervising digital assets by the end of this year. As Finance Magnates learned, the Polish government plans to present a bill on this matter in the second quarter of this year.
For the local industry, this means finally setting clear legislative frameworks, and the KNF will have the opportunity to impose financial penalties on companies in the cryptocurrency sector.
Poland to Regulate Cryptocurrencies. Compliance with EU Regulations
According to reports from Polish media, the move is not proactive but rather a response to European regulations on cryptocurrency markets that came into effect in May of last year.
“The introduction of new regulations is dictated by the need to prepare a legal framework for the proper functioning of crypto asset markets, thereby ensuring effective supervision and investor protection by equipping the Financial Supervision Authority with the appropriate means,” the official comment from the Polish government stated.
The first steps towards regulating the cryptocurrency market appeared in 2020. Over the past few years, the digital asset market in Poland has not had specific legal frameworks; only its tax status has been regulated. In the meantime, the KNF repeatedly warned investors about the excessive risk associated with investing in digital assets.
What changes can Polish crypto enthusiasts and local cryptocurrency companies expect? The proposed regulations suggest as many as seven significant changes.
Here’s the list of countries which lead crypto regulation👇
— KoinX (@getkoinx) December 21, 2023
KNF Will Be Able to Penalize Cryptocurrency Companies
Poland aims to more closely regulate crypto activities by designating the KNF as the supervising body and introducing stricter rules that crypto companies must follow:
- The main regulator for crypto in Poland will be the KNF. It will oversee new crypto regulations.
- Companies issuing crypto coins or providing crypto services will need to report their activities to the KNF. The KNF will check if they are following the rules.
- If crypto companies break the new regulations, the KNF can take action against them. This includes imposing fines or penalties.
- There will be stricter rules about criminal penalties for crypto companies that break laws. This is to protect consumers and investors better.
- The regulations also cover confidentiality rules about the information crypto companies obtain from their customers.
- Some provisions will allow crypto companies to use electronic contracts and statements. These will have the same legal validity as paper documents.
Poland will thus join the growing group of European countries where local supervisory commissions regulate the cryptocurrency market. Among them is the British FCA, which presented fresh guidance in November amidst crypto marketing turmoil in the country.