The Markets in Crypto-Assets^[1] Regulation (MiCA) established a consistent legal framework for the crypto-asset market across all European Union member states. It sets requirements for entities providing services related to crypto-assets and their issuers, concerning public offerings and admission to trading on crypto-asset trading platforms, as well as standards for service providers.

The government’s draft Act on the crypto-asset market (the “Draft“), ostensibly deregulatory and aimed at ensuring the application of the aforementioned MiCA regulation, was submitted for first reading at the Sejm of the Republic of Poland in July of this year.^[2] This is the first comprehensive legal act in our country regulating this matter; however, on behalf of the Confederation of the Polish Crown, a motion to reject the Bill was submitted at the sitting on July 22, 2025.

Key assumptions of the Project, i.e., supervision of the crypto-assets market

First, let us clarify that “crypto-assets” is understood in the same way as under the MiCA regulation, i.e., as a digital representation of value or right that can be transferred and stored electronically using distributed ledger technology or similar technology (Article 3 Section 1 Point 5 of the MiCA). As the Council of Ministers points out, 20% of people using the crypto-assets market in our country have been defrauded in various ways.^[3]

Therefore, to protect the interests of crypto-asset holders and clients of service providers, EU Member States must appoint a competent authority to enforce the obligations under the MiCA Regulation. As a result, in our case, the Polish Financial Supervision Authority (“KNF“) would be responsible for supervising the crypto-asset market.

Among its powers are:

• conducting inspections of the activities of issuers of asset-related tokens or e-money tokens, offerors, persons applying for admission to trading in crypto-assets, and service providers within their scope,
• granting and revoking permits referred to in the MiCA regulation,
• blocking a crypto-asset or cash account and suspending transactions to prevent the use of confidential information, manipulation, or attempted manipulation in the crypto-asset market,
• maintaining a Registry of Internet domains used to conduct activities that violate the provisions of Regulation 2023/1114 and making entries in it:
• Internet domains used to conduct activities related to crypto-assets without the required legal authorization or other authorization under the provisions of Regulation 2023/1114,
• Internet domains used to conduct activities that violate the above-mentioned provisions in another way, if this is necessary to prevent the risk of serious damage to the interests of customers or crypto-assets holders, in the absence of other effective measures to stop the infringement,

whereby a telecommunications undertaking providing Internet access services would be obliged to prevent, free of charge, access to websites using the name of an Internet domain entered in the Register and to redirect, free of charge, connections referring to the name of an Internet domain entered in the Register to a website maintained by the Polish Financial Supervision Authority (KNF), containing, among other things, a warning about the risk of causing severe damage to the interests of customers or holders of crypto-assets,

• ordering the offeror or issuer of asset-linked tokens or e-money tokens to suspend the commencement of a public offering of crypto-assets or to interrupt its course, as well as prohibiting them from commencing a public offering of crypto-assets or continuing it,
• publication, at the expense of the offeror or issuer of asset-related tokens or e-money tokens, of information about illegal activity in connection with the public offering of crypto-assets,
• imposing fines,
• prohibiting the person responsible for the violation from holding the position of a member of the management board, board of directors or managerial positions in entities that are providers of crypto-asset services, as well as submitting a request to the competent authority of the service provider to dismiss a member of the management board or board of directors in the event of a serious nature of the violation.

Other assumptions of the Project

Operating in the sector would require obtaining an appropriate permit, subject to a fee of no more than the PLN equivalent of €4,500. Additionally, the crypto-asset service provider would be required to pay an annual fee to cover the costs of supervising the crypto-asset market. The fee is based on the average total revenues over the last three financial years before the year the contribution is due. It is no more than 0.4% of that average, but not less than the PLN equivalent of €500.

A crypto-asset service provider can only provide these services based on a service agreement concluded with the client and regulations for the provision of crypto-asset services. Minimum requirements may be specified by regulation of the minister responsible for financial institutions.

The draft also includes several disclosure obligations, such as requiring issuers of asset-linked tokens, issuers of e-money tokens, and crypto-asset service providers whose home Member State is the Republic of Poland to submit information about their business activities, financial status, and events that could impact their operations to the Polish Financial Supervision Authority (KNF).

However, certain actions, such as unauthorized conduct of business related to the provision of services in the field of crypto-assets, are punishable by a fine, restriction of liberty, or imprisonment.

Furthermore, the register of virtual currency activities operating since 2021 is to be liquidated after 9 months from the date of entry into force of the Act. Under Article 143 Section 3 of MiCA, crypto-asset service providers who provided their services under applicable law before December 30, 2024, may continue to offer their services until July 1, 2026, or until they obtain (or are denied) a permit under Article 63.

In turn, the Project provides for the possibility of providing services in the field of crypto-assets on the current terms, but no longer than for:

• 4 months from the date of entry into force of the Act,
• 9 months from the date of entry into force of the Act, if before the expiry of 3 months from the date of entry into force of the Act, the entity concerned submits a complete application for the issuance of this permit and receives notification of the completeness of the application referred to in Article 63 Section 4 of MiCA.

Final remarks

The law will go into effect 14 days after its announcement. Delays in implementing regulations related to the crypto-asset market activity undoubtedly pose a risk of financial market abuse. However, given the heated discussions stemming from concerns about managing the regulatory burden (especially for the micro, small, and medium-sized enterprise sector), many more changes are expected to be made in order to find a compromise in the effort to protect crypto-asset market participants.

^[1]Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40).

^[2]Sejm of the Republic of Poland, Government draft act on the crypto-assets market (print no. 1424) , https://www.sejm.gov.pl/sejm10.nsf/PrzebiegProc.xsp?nr=1424 , access from 23.07.2025.

^[3]Service of the Republic of Poland, Draft act on the crypto-assets market (deregulation project) , https://www.gov.pl/web/premier/projekt-ustawy-o-rynku-kryptoaktywow-projekt-deregulacyjny , access from 23.07.2025.