The Polish Financial Supervision Authority is to supervise the cryptocurrency market in Poland

Cryptocurrency lovers are still faced with the new government of Donald Tusk, but there are many indications that it is now entering shaky ground. Already in the first half of the year, the government is to adopt a draft law under which: Polish Financial Supervision Authority is to supervise the cryptocurrency market in Poland. And this means not only regulations, but also penalties for entities trading in cryptocurrencies.

The Polish authorities hide the fact that it is not their decision. It was the European Union who decided to prepare the appropriate regulations.

"The draft law is the result of the adoption by the European Parliament and the Council (EU) of Regulation 2023/1114 of 31 May 2023 on crypto-asset markets" – we read in the official statement of the Polish government.

What will change on the Polish cryptocurrency market?

The new regulations must correspond to the legal framework for the functioning of capital markets, including the cryptocurrency trading market, which will apply in all European Union countries. In theory, it is about effective supervision of entities enabling trading in cryptoassets and, above all, protection of individual investors against unfair practices, sometimes used by the largest market players.

After adopting the new law, the Polish Financial Supervision Authority will have legal tools that will allow representatives KNF to impose penalties on capital market participants.

Seven changes on the Polish cryptocurrency market

To make effective supervision possible, as many as seven key changes will be introduced. First of all, the Polish Financial Supervision Authority will be able to supervise not only in name. This will allow for the implementation of the provisions that the Polish government will adopt through a regulation.

The Polish Financial Supervision Authority will also be able to prepare guidelines for all issuers of new cryptocurrencies. They will have to send a detailed plan of their activities before the issue, as well as settle it periodically and provide information on what they have done and are doing on the market.

And most importantly: the Polish Financial Supervision Authority will be able to check any possible violations. And if such events occur, it will be able to benefit from the full range of penalties that it can currently impose on capital market participants. Now the cryptocurrency market will also be covered. This concerns financial penalties not only for the entities and institutions themselves, but also for specific people. They will also be subject to criminal liability.

The method of communication with investors and clients, as well as marketing opportunities and professional secrecy will also be regulated. You can therefore expect that the solutions will be similar, if not the same, to those concerned Forex market. Especially since trading in currencies or contracts is often dealt with by exactly the same institutions that also invest in the cryptocurrency market.

Bitcoin ETF approved, Ethereum coming soon?

When we start to prepare for greater control in the European Union and Poland, overseas we are already (as usual) two steps ahead. Last week, after a long wait, US Securities and Exchange Commission (SEC) approved the first exchange-listed investment funds that will purchase Bitcoin on the spot market. Bitcoin ETF will create the opportunity to purchase BTC to all people who wanted to do so, but were unable or did not want to buy cryptocurrencies on exchanges.

Applications from other institutions that also want to offer investment in are already waiting in the queue Bitcoin, but also the second largest cryptocurrency – Ethereum. We expect the SEC's decision on them in the coming weeks.