Criticism of Poland’s Crypto-Asset Market Law
The CEO of Zondacrypto, Przemysław Kral, has criticized Poland’s proposed crypto-asset market law, calling it a “first-class example of over-regulation” that could lead to criminalization of basic crypto activities of service providers.
The proposed law introduces strict license requirements and harsh punishments for crypto companies, sparking criticism from industry leaders and legislators. Kral argues that the draft law overregulates the sector, criminalizes fundamental activities such as smart contract development, and will cause companies to move to more crypto-friendly countries.
Key Provisions of the Law
The law would introduce a license regime for crypto providers of asset service providers and align Poland’s regulations with the European Union’s Markets in Crypto-Assets (MiCA) framework. However, the legislation also imposes harsh sanctions for violations, including fines of up to 10 million Polish Zlotys (approximately 2.8 million US dollars) and prison sentences of up to two years.
Kral emphasized that the new regulatory framework could stifle innovation in the country’s burgeoning crypto market. “Poland has gone too far, and its domestic crypto industry will suffer,” he said. “Companies will move to friendly markets, taking jobs and tax revenue with them.”
Impact on the Crypto Industry
According to Kral, the law would make it difficult for new crypto companies to start in Poland, allowing existing giants to dominate the market. The process of obtaining a license would require crypto companies to submit a detailed application, including company structure, capital assumptions, internal controls, and compliance systems.
If the legislation is passed, crypto providers of assets in Poland would have six months to secure the required license, or risk being shut down and facing legal punishments such as fines and prison terms. Kral believes that while regulation is necessary to protect consumers, over-regulation can be counterproductive.
Reactions from Legislators and Industry Leaders
Janusz Kowalski, a member of the SEJM opposition Law and Justice Party, described the government’s interpretation of the EU ordinance as “the largest and most restrictive cryptocurrency law in the EU.” Kowalski criticized the law, saying it would block the development of crypto assets in Poland.
Zondacrypto’s decision to be regulated in Estonia, where it pays over EUR 6 million in value tax every year, highlights the company’s preference for a more favorable environment. Kral quoted Poland’s “less favorable environment” as the reason for moving its business elsewhere.
Read more about the proposed crypto-asset market law in Poland and its potential impact on the industry at https://crypto.news/zondacrypto-ceo-slams-poland-over-strict-crypto-bill/
