The Polish Financial Supervision Authority wants to block accounts of cryptocurrency holders. Without a court verdict or even charges

Further leaks from work on the act that is to regulate the cryptocurrency market in Poland do not fill holders of digital assets with optimism. Polish Financial Supervision Authority would like to include in the act the possibility of blocking accounts of cryptocurrency holders. This possibility also exists in traditional banking, but here the supervisor dreams of being able to impose a block on anyone, even without a court verdict, charges or even a prosecutor's order.

Let us remind you: preparations for the so-called Cryptocurrency Act. The idea is to regulate this market in Poland so that individual customers are more protected. It is true that the vast majority of stories about someone losing their fortune on cryptocurrencies concern classic frauds, i.e. criminal activities (such as "for a grandchild", and somehow no one came up with the idea of ​​a law on grandchildren...), but the legislator wants to include, for example, a ban on offering to sell cryptocurrencies without permission. Fines from the Polish Financial Supervision Authority may reach up to PLN 67 million against one entity. The act would come into force in December this year. However, subsequent reports from work on it allow us to conclude that this will not happen soon.

Blocking accounts of cryptocurrency holders

Work on the bill continues, and lawyers are scratching their heads. Their doubts are raised primarily by the proposal that the Polish Financial Supervision Authority could block the assets of crypto-asset holders. Experts do not mince words and say directly that such a solution would not only be a gateway to the abuse of power, but also an act inconsistent with the constitution.

On the other hand, there are voices that this is a specific market in which extraordinary tools must be used.

Blocking would take a maximum of 96 hours, but the leak about such plans caused a media storm.  Especially since after this time the blockade could be extended - by the prosecutor's office - for another six months.

Lawyer: It's unconstitutional

There is no need to explain to anyone how much can happen during this time in dynamic mode cryptocurrency market. You can easily become a millionaire in half a year or lose everything. At the same time, without being formally accused or even suspected of any crime. Worst of all, the investor will have no opportunity to appeal against the subjective decision of the PFSA official.

– If after half a year the citizen is not charged in criminal proceedings and the blockade of funds does not "transform" into property security, he will regain the ability to manage them. However, price jumps on the market are so dynamic that it is difficult to assume that he will not lose financially. Moreover, the provisions enabling the Polish Financial Supervision Authority to order the sale of cryptocurrencies are unconstitutional – emphasizes Leszek Kieliszewski, a lawyer specializing in financial markets, in an interview with "Rzeczpospolita".

Cancellation? What appeal?

Moreover, there will be virtually no effective possibility of appealing against such a decision. The project does contain provisions that refer to: Code of Criminal Procedure in unregulated matters, but they are very general. At least for now.

This means that it will be formally possible to file a complaint against the decision of an official of the Polish Financial Supervision Authority, but it would first have to be proven that it can be done at all.

– Therefore, it seems that the legislator did not provide for the possibility of appealing against the decision to block the PFSA – notes Krzysztof Izdebski, lawyer and expert of the Batory Foundation and the Open Spending EU Coalition, in "Rzeczpospolita".