The Polish government is expected to introduce a new crypto-focused bill in Q2, granting the local financial regulator with new power.
The Polish Financial Supervision Authority (KNF) is gearing up to regulate cryptocurrencies by the end of 2024 with a new bill, Finance Magnates reports, citing sources from the Polish government.
The new bill, which is expected to be introduced in the second quarter of this year, is said to grant KNF with new power to impose financial penalties on crypto companies. While the size of penalties nor the reason for them are yet to be disclosed, Polish news outlets say the initiative is a response to European regulations called Markets in Crypto-Assets Regulation (MiCA) that was signed in May 2023.
An official from the Polish government reportedly said that the bill was dictated by the “need to prepare a legal framework for the proper functioning of crypto asset markets.” With the undergoing legislation, Poland might put an end to its historical flexibility on cryptocurrencies, as the country has been primarily addressing tax-related aspects so far.
Poland, influenced by MiCA, is not alone in reevaluating its regulatory stance on cryptocurrencies. Ukraine, seeking European Union membership, also affirmed its intention to regulate digital assets in line with MiCA requirements.
In April 2023, Yaroslav Zheleznyak, deputy chairman of the Ukrainian Tax Committee, declared on his Telegram channel that his Committee is working with the National Commission for Securities and the Stock Market (NSSMC) and other regulatory organizations to put some MiCA provisions into practice.
MiCA is expected to provide clear legal guidelines for cryptocurrencies and crypto firms that aren’t covered by existing EU laws. According to the European Parliament, the regulation aims to protect consumers and investors, ensure financial stability, and encourage innovation in the use of crypto-assets. MiCA is expected to take effect on Dec. 30.