Polish Act on Cryptocurrencies – what will an ordinary person lose?

By the end of 2024, a new law, the so-called Cryptocurrency Act. Its introduction is related to the implementation of European regulations, and more precisely, the regulation Mica (Markets in Crypto Assets Regulation). However, Polish regulations are much more restrictive than required by EU law, and their consequences will affect those they are theoretically supposed to protect, i.e. ordinary market users.

- Today, if someone wants to buy cryptocurrency for the first time, there are many places where they can go and receive professional help and advice on how to buy cryptocurrencies safely and how to avoid fraud. After the provisions of the Act enter into force, these smaller entities will simply disappear from the market, and fraudsters will continue to operate as they did. Some say this is an attack on the cryptocurrency world. - says Sławek Zawadzki, president of Kanga, a platform providing cryptocurrency exchange services (including stock exchanges and currency exchange offices).

New regulations on cryptocurrencies – will they protect investors?

The draft law regulating the crypto-assets market in Poland appeared on the website of the Government Legislation Center at the end of February. Its goal is to implement the European Markets in Crypto-Assets Regulation (MiCA) and adapt it to the national market.

The need to protect investors exposed to various frauds and the desire to prevent pathologies such as money laundering, which lie at the basis of the introduced law, are of course a right and necessary intention. However, some provisions of the Polish law raise serious doubts among experts, because MiCA is much more liberal and the provisions of Polish law will primarily affect small entities.

- Anyone who wants to run a business involving the purchase or sale of cryptocurrencies - regardless of whether it is a large cryptocurrency exchange or a small point, an exchange office on the city streets - will have to pay a security of PLN 125. euro. In Poland, we have over a thousand such points where you can physically go and safely buy cryptocurrency. Most of them will simply be wiped out of the market because they will not be able to post such a huge security – explains the expert.

What does this mean for ordinary market participants, people who would like to invest part of their savings in cryptocurrencies? This means that only the largest players will remain on this market and they will have to charge large fees to meet regulatory requirements. This will limit the availability of cryptocurrencies to small investors, without sufficiently protecting them against potential abuses.

Investing in cryptocurrencies is a global trend

The decisions of the Polish legislator are surprising in the context of global trends. Cryptoassets are becoming an increasingly popular and accessible form of investment for everyone.

– When we say cryptocurrencies, we most often associate Bitcoin, but cryptocurrencies today are much more. This is a number of various cryptocurrencies, tokens, and cryptocurrency mechanisms. It is a very extensive system, just like classic finance – emphasizes President Kanga, adding that for some reason in Poland cryptocurrencies are still treated very distrustfully.

- The cryptocurrency market in Poland is currently heavily ostracized, which is a pity because at the same time in the United States, where there are also appropriate regulations, it is clearly stimulated by legislators. Since the beginning of this year, investors, institutional and small, can legally purchase cryptocurrencies on a large scale. They can enjoy all the wealth and opportunities that "crypto" offers. This will be taken away from Kowalski.