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Cryptocurrency license in Poland
If you want to know more about the opportunities available to you in Crypto Poland market, talk to our team of banking professionals at GBO International Financial Services. We have over 12 years of experience helping investors build profitable and viable digital banking services in Europe.
WhatsApp us: +972504938469, email us: info@gbo-il.com
Polish cryptocurrency regulation
Poland is a great opportunity for investors looking for a progressive and stable base in which to set up a cryptocurrency bank in the European Union.
Poland does not see trading in cryptocurrencies as a financial audit matter. Virtual currencies are not part of the Polish financial market as defined by Polish legislation. However, in October 2021, new regulations were put in place controlling virtual currency transactions.
A registered crypto trader can provide the following activities in the field of virtual currencies:
The Polish Financial Supervisory Authority (KNF) says that “In the Polish system, there are no regulations prohibiting the conduct of an activity as an exchange or an exchange office for cryptocurrencies, which means that conducting activities in the form of an exchange in cryptocurrencies, as well as trading in cryptocurrencies, is not prohibited and is therefore legal.”
Regulations introduced in 2021 state that trading activities in digital currencies include exchanging between virtual and fiat or between other virtual currencies, creating markets for those exchanges, and creating digital accounts where customers store virtual currencies.
In Polish law, ‘virtual currency’ is defined as a token that can be stored or transmitted electronically, traded for legal tender, accepted as a medium of exchange or settled in electronic commerce. Nor may it represent legal tenders issued by the National Bank of Poland or foreign central banks or other recognized public bodies such as the euro, which are accepted by countries that are members of the European Union. The definition of virtual currency also distinguishes it from electronic money, financial instruments, checks, and bank notes.
The cautious and evolvable nature of Poland’s regulatory stance toward cryptocurrencies. The Polish government and financial regulators have taken steps to clarify the legal status of cryptocurrencies and prevent money laundering and other illegal activities associated with them. In 2018, the Financial Supervision Authority of Poland (KNF) issued a warning to investors regarding the risks associated with cryptocurrencies and initial coin offerings (ICOs). According to the KNF, cryptocurrencies are not legal tender in Poland, and there are no regulations governing their use.
In 2019, Poland enacted regulations requiring cryptocurrency exchanges to register with the KNF and comply with anti-money laundering (AML) and counter-terrorism (CTF) laws. The regulations also require exchanges to confirm the identities of their users and report any suspicious transactions.
The Polish Ministry of Finance announced in 2020 that it was drafting a law to regulate the cryptocurrency industry in the country. The proposed law would require cryptocurrency exchanges to obtain licenses from the KNF and adhere to AML and CTF laws. Additionally, the law would establish regulations for initial coin offerings (ICOs) and cryptocurrency trading platforms.
Poland’s regulatory stance on cryptocurrencies is evolving, with an emphasis on preventing criminal activities and protecting investors. Although cryptocurrencies are not yet fully regulated in Poland, the government and financial regulators are working to clarify their legal standing and establish a framework for their use.
Poland’s primary financial regulatory agency is the Financial Supervision Authority (KNF). The KNF is responsible for supervising and regulating Poland’s financial sector, including banking, insurance, and capital markets. The authority was founded in 2006 and operates as an autonomous agency under the direction of the Minister of Finance.
The primary objectives of the KNF are to ensure the stability and security of the financial system, to safeguard the rights of consumers, and to promote transparency and accountability in the financial sector. The authority possesses a vast array of powers, including the ability to issue licenses to financial institutions, impose fines and sanctions for noncompliance with regulations, and investigate and prosecute financial crimes.
In the context of cryptocurrencies, the KNF has adopted a cautious and adaptable regulatory stance. In 2018, the KNF issued an investor alert regarding the risks associated with cryptocurrencies and initial coin offerings (ICOs). The warning stated that cryptocurrencies are not recognized as legal tender in Poland and that there are no regulations governing their use.
In 2019, Poland enacted regulations requiring cryptocurrency exchanges to register with the KNF and comply with anti-money laundering (AML) and counter-terrorism (CTF) laws. The regulations also require exchanges to confirm the identities of their users and report any suspicious transactions. In general, the KNF plays a vital role in regulating the Polish financial sector, including the emerging field of cryptocurrencies. Its emphasis on consumer protection and financial stability is likely to guide future regulatory developments in the nation.
How to set up a Polish cryptocurrency business
In the following sections, we will identify what are the basic steps needed so that you can establish your operations in this market.
Corporate requirements in Poland
The primary requirement is that the Crypto Banking claim must be held by a company registered in Poland itself, not one with its registered office in a fellow member of the EU. However, ultimate ownership of the company is not restricted to Polish citizens, or even to citizens of other European Union or European Economic Area (EEA) countries.
There are two options:
Our trained team here at GBO International Financial Services can provide you with all the necessary guidance and will assist in performing all of these steps. Talk to us before you start so that you do not miss out on any required steps.
Since Poland is within the European Economic Area, the bank account for a crypto company in Poland can be opened at any registered EEA payment institution. This does not require a physical visit and can be done remotely.
Licensing a Polish company authorized as a cryptocurrency exchange
In Poland, there is no formal licensing authority. You are only required to register the company with the Register of Organizations as being authorised to trade in cryptocurrency. This requires payment of the required government fees and production of your company’s Anti-money Laundering procedures in Polish.
WhatsApp us: +972504938469, email us: info@gbo-il.com
As a result of the changes introduced by the Polish Financial Supervision Authority in November 2021, any company that wishes to offer services of any kind to the public relating to cryptocurrencies or digital currencies must be registered as a Virtual Asset Service Provider. Only registered VASP companies are permitted to deal in digital assets, offer services as a crypto exchange or issue digital wallets, or provide corporate services support.
If you are planning to operate in the sphere of digital or virtual assets anywhere in the EU with your company based in Poland, you should consult with our trained staff here at GBO. Be aware that there are serious penalties for any companies and their directors if they operate in breach of these new VASP regulations.
Despite these new requirements, Polish regulations are still more flexible with regard to the setup process than their equivalents in neighbouring EU states like Lithuania and Estonia. With the help of GBO, you can get lower setup costs in Poland than are possible in these other jurisdictions, and also get your company licenced and operating faster.
There are four different VASP authorisations issued for companies operating ith the different types of digital asset services.
These are:
1. Exchange providing the service of exchange of crypto/fiat currencies and fiat/crypto currencies
2. Exchange of crypto/crypto currencies
In the case of exchange services, the VASP regulations stipulate the level of commission that can be charged.
3. Brokerage.
4. Providing digital wallet services
In the case of brokerage, the margin between buyer and seller is set by the market.
A digital wallet service uses encrypted keys for the purpose of keeping, storing and transferring virtual currencies. In Poland, Paypal, ApplePay and GooglePay are the most popular payment service providers.
One company that is registered as a VASP is permitted to conduct all four types of digital currency activities. GBO can help you in your application for the registration as a VASP in Poland that will allow your company to provide digital exchange and cryptocurrency wallet services.
Can a Polish cryptocurrency exchange support fiat-to-crypto and crypto-to-fiat trading?
There are no restrictions in Poland on the type of trading as long as the company adheres to the AML and KYC regulations. The conduct of individual transactions is supervised.
However, fiat currency cannot be stored on behalf of customers. This is considered as investment activity and requires a separate licence.
Under current crypto regulations, to store ordinary (fiat) balances on behalf of a customer can only be done by a company with a Polish payments licence.A Polish crypto company can only engage in fiat/crypto and crypto/fiat exchanges. Purely fiat transactions cannot be handled through the company’s bank account, since this is a service that requires a separate licence.
According to the judgement of the Court of Justice of the European Union on October 22, 2015 (C-264/14), it is generally legal in the EU to conduct trading in the field of virtual currencies. Each country can set its own rules and regulations but they must adhere to the minimum level of control that was stipulated in that ruling.
Any company is classified as a small taxpayer in the first year of trading and subsequently when its sales in a single tax year did not exceed the złoty equivalent of two million euro. For small taxpayer companies, the Corporate Income tax (CIT) rate in Poland is nine percent. For all other companies, the rate is nineteen percent.
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