“Most Restrictive in the EU”: Poland’s Crypto Bill Draws Industry Backlash

Poland’s lower house of parliament has approved a sweeping bill to regulate cryptocurrency services, setting the stage for one of the EU’s toughest digital asset laws.

Specifically, lawmakers have approved Bill 1424, titled the Crypto-Asset Market Act. The measure now advances to the Senate for deliberation before being sent to President Karol Nawrocki for final approval.

According to proponents, the law would bring Poland’s legislation in line with the EU’s MiCA framework to harmonize rules across member states. Notably, the bill passed with 230 votes in favor and 196 against.

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Licensing Regime and Regulatory Oversight

If enacted, the legislation would establish a mandatory licensing framework for all crypto asset service providers (CASPs). Both domestic companies and foreign firms operating in Poland fall under its scope.

To qualify, applicants must submit extensive documentation. This would cover their corporate structures, capital adequacy, compliance mechanisms, internal controls, risk management strategies, and anti-money laundering procedures.

Poland’s regulator, the Komisja Nadzoru Finansowego (KNF), would serve as the sole authority responsible for reviewing and granting these licenses.

Businesses already active in the sector would have a six-month transition period to comply with the new regulations. Once that period ends, any unlicensed operation could face forced closure and legal consequences.

Heavy Penalties for Non-Compliance

The law also introduces criminal penalties for firms that attempt to operate without authorization. Sanctions include fines of up to $2.8 million and prison sentences of up to two years.

Such strict enforcement mechanisms have fueled concerns among stakeholders that the legislation prioritizes control over innovation.

Fierce Criticism from Opposition

Opposition politicians have been quick to condemn the bill. In a post on X, Janusz Kowalski, a member of the conservative Law and Justice party, described the act as the most restrictive crypto law in the EU. He warned that the regulation could jeopardize the interests of Poland’s three million crypto holders.

Kowalski also criticized the excessive length of the legislation, which runs to 118 pages. He noted that this is far more than the shorter frameworks adopted by countries such as Germany and the Czech Republic.

Meanwhile, pro-blockchain politician Tomasz Mentzen raised alarms about the KNF’s capacity to manage the licensing process. According to him, the regulator already takes an average of 30 months to process applications. If the new law is enforced, he argued, many firms could face crippling delays, leading to the “destruction of blockchain and stablecoins in Poland.”

He also called on the Senate and President Karol Nawrocki to intervene and block the bill to protect Poland’s cryptocurrency market.

Sejm głosami ekspertów takich jak pani Skowrońska przyjął ustawę o zniszczeniu blackchaina i stabletcoinów w Polsce.

Teraz senat, potem konieczne weto @NawrockiKn i można składać projekt ustawy rozwijający a nie zwijający rynek krypto aktywów w Polsce. pic.twitter.com/LgeSdNB4aD

— Tomasz Mentzen (@TomaszMentzen) September 26, 2025

Election Promises Meet Regulatory Reality

The timing of the debate is notable, as it follows closely on the heels of Poland’s presidential election in June.

The winner, Karol Nawrocki, secured 50.9% of the vote in the runoff. During his campaign, he pledged to defend innovation and oppose what he called “tyrannical regulations” that restrict individual freedoms.

His rival, Sławomir Mentzen, who finished third in the first round, went even further, promising to establish a Bitcoin reserve if elected. Although unsuccessful, his strong pro-crypto stance signaled the growing political relevance of digital assets in Poland.