Poland’s parliament has approved a long-awaited bill to regulate the domestic cryptoasset market. However, the legislation has not yet been signed by President Karol Nawrocki. In a new open letter, XTB urged him to do so, noting an 11-month delay in implementing the new law in the country.
The legislation aims to bring Poland in line with the European Union’s MiCA framework, but critics, including opposition politicians and many local crypto advocates, argue that the current draft threatens to undermine the competitiveness of Poland’s digital finance sector.
XTB Calls For Swift Action
XTB, one of the country’s largest digital brokers, sent an open letter to the president demanding rapid ratification of the “Act on the Cryptoasset Market.”
In its letter, XTB argues that Poland is lagging more than 11 months behind its EU peers, exposing local investors to risks and leaving domestic firms unable to compete in the fast-evolving European market.
XTB also warns that in the absence of a national law implementing MiCA, only foreign entities can operate legally, pushing Polish customers to offshore platforms outside the supervision of national authorities and potentially putting tax revenues at risk.
“Without a local law, Polish investment firms cannot obtain the necessary licenses,” XTB says in a letter signed by two board members, including Jakub Kubacki and Filip Kaczmarzyk.
Regulatory Scope Fuels Industry Criticism
The bill, now on the president’s desk, is one of the most expansive in the EU: critics note it runs to 334 pages, and more than 1,200 pages with implementing acts, far longer than those in Austria (23), Romania (16) or Ireland (24).
Sławomir Mentzen, leader of the opposition party Konfederacja, has called the legislation “the most unfriendly in Europe,” warning that it will discourage all but the most determined market entrants.
Mentzen highlights that the bill hands supervisory authority to Poland’s Financial Supervision Authority (KNF), a regulator with a reputation for heavy-handedness in the sector, including blacklisting crypto companies and encouraging banks to shut down accounts for legal assets.
“The KNF has proven for years that it is openly hostile to innovation,” Mentzen says, warning that “one click from a bureaucrat can wipe a crypto exchange off the market, without the right to appeal.”
He also points to a planned 0.4 percent tax on gross revenues, which critics see as a punitive cost burden, and the lack of an expedited registration path for licensed brokerages.
XTB pushes back, suggesting that “the absence of any legislation poses a far greater threat to Polish companies and investors” than the possibility that the bill in its current form may be “imperfect.”
Threat to Homegrown Crypto Businesses
Industry insiders and social media commentators suggest that XTB has an immediate stake in seeing the law enacted, since the company has allegedly been unable to roll out a long-promised spot crypto trading service in the absence of regulatory clarity.
Broader sentiment among market participants echoes the call for MiCA, but contends that the Polish version should stop short of adding extra layers beyond what is required at the EU level, a concept they describe as “MiCA plus zero.”
Mentzen and others warn that the current version will prompt crypto startups and jobs to move offshore, handing business and tax revenue to other EU member states. He advocates for a limited implementation that simply reflects the EU regulation, and for an independent crypto regulator not tied to the current financial watchdog.
“If Poland continues down this path, it will lose its chance to be a hub for crypto innovation and see revenue flow abroad,” he argues.
Interestingly, XTB points to the same problem from its own perspective. According to the broker, the lack of regulatory clarity is putting local firms at a disadvantage, while foreign competitors are already offering crypto trading services to Polish residents.
The fintech asserts that the delay not only harms the interests of Polish companies and investors, but makes the local market attractive for firms based in lighter-regulated jurisdictions who do not pay taxes or submit to domestic regulatory oversight.
Political, Tax and Consumer Stakes
The Polish Economic Institute estimates that one in five crypto investors in the country has reported being a victim of fraud, adding pressure on authorities to find an effective regulatory solution that protects consumers without throttling domestic industry.
“This shows the scale of the problem, which should be addressed by introducing the Act on the Cryptoasset Market,” XTB added.
As the president considers his next move, the Polish crypto sector faces a crucial inflection point: waiting to see whether the law will open the door to EU-aligned growth or set hurdles too high for local businesses to clear.
This article was written by Damian Chmiel at www.financemagnates.com.
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