Poland offers a straightforward and business-friendly environment for cryptocurrency operations, governed mainly by the Polish Anti-Money Laundering and Terrorist Financing Law.
Until the Markets in Crypto-Assets (MiCA) Regulation comes into force on December 30, 2024, businesses wishing to operate in Poland's crypto space must comply with existing laws, including obtaining a Virtual Asset Service Provider (VASP) license.
Below, we outline the current regulatory framework, benefits of obtaining a crypto license in Poland, and insights into the evolving market.
Current Cryptocurrency Licensing Requirements in Poland
To provide crypto-related services in Poland, entities must register in the Register of Virtual Currency Activities and obtain a VASP license. Licensed VASPs can offer services such as:
- Exchange between virtual currencies and fiat money (e.g., EUR to BTC, BTC to USD),
- Exchange between virtual currencies (e.g., BTC to ETH),
- Intermediation in crypto exchange services mentioned above,
- Custody services, including providing crypto wallets (on-ramp, off-ramp).
VASP Registration Process
- Fast Turnaround: Registration takes just 14 days.
- Low Costs: Registration costs PLN 616, plus minor fees (e.g., PLN 17 for power of attorney duty stamps).
- Minimal Paperwork: Requires statements from board members and beneficial owners.
Why Obtain a VASP License in Poland?
Poland provides a dynamic ecosystem for cryptocurrency investments, featuring a tech-savvy workforce, growth-oriented population and competitive registration costs. Here's why obtaining a VASP license in Poland is advantageous:
- Legal Operations: Operate legally and gain the trust of investors and partners.
- Market Growth: Tap into Poland's growing cryptocurrency market, the largest financial services market in Central and Eastern Europe (CEE).
- Business Expansion: Collaborate with financial institutions and payment providers.
- Future-Ready: under certain conditions VASPs registered before December 30, 2024, can operate under their VASP license until transitioning into the new CASP license introduced by MiCA regulations.
The Growing Crypto Market in Poland
According to the FinTech Foundation Report 2023, Poland's FinTech sector is thriving and poised for further expansion.
As of November 2024, there are more than 1,600 entities actively registered as VASPs. However, not all registered companies are operational, creating room for new market entrants.
Transition to CASP License Under MiCA
From December 30, 2024, companies offering crypto services in the EU must obtain a Crypto Asset Service Provider (CASP) license. This license ensures compliance with MiCA regulations and provides passporting rights, allowing businesses to operate seamlessly across the EU.
Key Differences Between VASP and CASP Licenses
- VASP License: Currently required for crypto operations in Poland.
- CASP License: Mandatory from 2025, for services across the EU, with a grace period for existing VASPs.
Services Requiring a CASP License
- Custody and management of crypto assets on behalf of clients.
- Operating trading platforms for crypto assets.
- Exchanging crypto-assets for fiat or other crypto-assets.
- Executing and managing purchase orders for crypto assets.
- Providing advice and portfolio management for crypto assets.
- Offering crypto-asset transfer services.
Seizing Opportunities in Poland's Crypto Market: A Strategic Call to Action
Poland's proactive approach to cryptocurrency regulation, combined with its robust FinTech ecosystem, positions it as an attractive hub for crypto businesses. Whether you're planning to register as a VASP or prepare for MiCA compliance, the opportunities in Poland's crypto market are significant.
Act now to secure your VASP license and establish a foothold in this growing market. With the transition to CASP license under MiCA on the horizon, early compliance ensures your business remains competitive and legally compliant.
CRYPTO LICENSE REQUIREMENTS IN POLAND: A COMPREHENSIVE GUIDE
Poland's evolving cryptocurrency regulatory framework sets clear requirements for businesses aiming to operate as virtual asset service providers (VASPs). Whether you're planning to engage in crypto trading, custody services, or exchange operations, understanding the crypto license requirements in Poland is essential for ensuring compliance and maintaining business credibility.
Key Requirements for Obtaining a Crypto License in Poland
To register as a VASP and legally operate in Poland, companies must meet two primary requirements: the no criminal record requirement and the professional qualifications requirement.
1. No Criminal Record Requirement
This requirement applies to both individuals and entities associated with the business:
For Individuals (e.g., managing persons, beneficial owners):
- Must not have been legally convicted of intentional crimes, including:
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- Crimes against state institutions and local governments,
- Document fraud,
- Economic crimes,
- Terrorist financing,
- Intentional fiscal offenses.
For Entities:
- Shareholders, partners, or management members must not have any criminal convictions related to the offenses outlined above.
2. Professional Qualifications Requirement
Individuals performing activities related to virtual currencies must demonstrate relevant knowledge or experience. This can be achieved by:
- Completing a training program or course covering legal and practical aspects of virtual currency operations, or
- Having at least one year of experience in virtual currency-related activities, supported by relevant documentation.
Entities fulfilling both requirements are eligible for entry into the Register of Activities in the Field of Virtual Currencies.
Post-Registration Obligations for Crypto Businesses in Poland
After successfully registering as a VASP, companies must adhere to several post-registration requirements under Polish law.
These include:
1. Money Laundering and Terrorist Financing Prevention:
- Conducting risk assessments for money laundering and terrorist financing.
- Implementing financial security measures, such as:
-
- Customer identification and verification (KYC).
- Identifying and verifying the ultimate beneficial owner (UBO).
- Assessing business relationships and monitoring them regularly.
2. Internal Procedures:
- Developing internal policies to counter money laundering and terrorist financing.
3. Reporting Obligations:
- Notifying Polish authorities of specific / suspicious transactions.
- Cooperating with authorities when suspicious activities are detected.
- Submitting quarterly activity reports to the General Inspector of Financial Information (GIIF) within 18 days of the end of each calendar quarter.
Sanctions for Non-Compliance with Crypto Laws in Poland
Failure to comply with post-registration obligations can result in significant administrative and financial penalties.
These include:
- Public disclosure of the entity's illegal activities on the Minister of Finance's website.
- Orders to cease specific activities.
- Removal from the Register of Virtual Currency Activities.
- Prohibition from holding managerial positions for up to one year.
- Financial penalties, which can amount to:
-
- Twice the benefit gained or loss avoided due to the violation, or
- Up to €1,000,000 if the benefit or loss cannot be determined.
Criminal Penalties:
Individuals acting on behalf of the entity which fails to notify authorities of suspicious activities or provide false information may face 3 months to 5 years of imprisonment.
Why Compliance Matters for Crypto Businesses in Poland?
Adhering to Polish crypto regulations not only ensures legal compliance but also boosts credibility with partners and customers. By fulfilling registration and reporting requirements, businesses can operate securely in Poland's growing cryptocurrency market, fostering trust and long-term success.
Stay ahead in Poland's cryptocurrency landscape by ensuring your business meets all licensing, reporting, and compliance standards. Non-compliance can lead to severe penalties, so act now to safeguard your operations.
VASP Frequently Asked Questions
Is cryptocurrency activity legal in Poland?
Yes, cryptocurrency activity, including transactions and business operations involving virtual assets, is legal in Poland as long as there is no explicit prohibition under Polish law. Businesses engaging in cryptocurrencies must comply with relevant regulatory requirements.
Is cryptocurrency activity legal in the European Union?
Yes, cryptocurrency activity is generally legal across the European Union. This was confirmed by the Court of Justice of the European Union in its ruling of October 22, 2015 (C-264/14). Cryptocurrency businesses operating in the EU must adhere to local and EU-wide regulations.
Is cryptocurrency business supervised by Polish financial authorities?
Currently, cryptocurrency businesses are not classified as part of the financial market under Polish law and are therefore not subject to direct financial supervision. However, the authority responsible for maintaining the Register of Virtual Currencies may inspect VASPs to ensure compliance with registration requirements. This situation will change along with application of MiCA regulation.
How long does the crypto registration process in Poland take?
The registration process typically takes 14 days from the submission of a correctly completed application, along with all required documents. The Director of the Tax Administration Chamber in Katowice, under the authority of the Minister of Finance, handles the registration process.
What are the reasons for a crypto license application to be denied?
Polish authorities may deny a crypto license application under several circumstances, including:
- Incomplete applications that are not corrected within the given timeframe.
- Inconsistent or false information in the application.
- Legally binding decisions prohibiting the applicant from conducting the proposed business activity.
What can I do if my crypto license application is denied?
If your application is denied, you can:
1. Request reconsideration of your case by the Minister of Finance.
2. File an appeal with the competent Regional Administrative Court for further review.
Are there any specific post-registration obligations for virtual currency businesses in Poland?
Yes, crypto businesses must comply with several post-registration obligations, including:
- Identifying and assessing money laundering and terrorist financing risks.
- Implementing financial security measures such as customer identification and ongoing monitoring of transactions.
- Developing internal policies to combat money laundering and terrorist financing.
- Submitting quarterly reports to the General Inspector of Financial Information (GIIF).
- Cooperating with Polish authorities in cases of suspicious activities.
Can post-registration obligations be outsourced to third parties?
Yes, certain obligations, such as financial security measures and reportings, can be outsourced to third parties. However, outsourcing does not absolve the business owner of their legal responsibility for compliance.
What are the penalties for failing to comply with post-registration obligations?
Non-compliance with post-registration obligations can result in administrative penalties, including:
- Public disclosure of the violation on the Minister of Finance's website.
- Orders to cease specific activities.
- Removal from the Register of Virtual Currency Activities.
- A prohibition on holding managerial positions for up to one year.
- Financial penalties of up to €1,000,000 or twice the financial benefit gained from the violation.
Criminal Liability: Individuals acting on behalf of non-compliant businesses may face imprisonment ranging from 3 months to 5 years.
Is a PSD2 license required for cryptocurrency activity in Poland?
Generally, a PSD2 (authorized payment institution) license is not required for cryptocurrency activities. However, if your crypto business includes payment services, you may need to obtain either an authorized payment institution license (KIP) or a small payment institution license (MIP), depending on the scope of services.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
