Poland may lose domestic crypto platforms on July 1, KNF claims

The operations of Polish crypto trading platforms and service providers will not be legal next summer, according to Poland’s main financial authority.

The watchdog, which expects to be empowered with oversight in this space, is raising the alarm over the lack of the necessary legislation.

Industry watchers say the regulatory body is trying the increase pressure on the Polish president, who vetoed it once, to let it pass this time.

Poland may lose domestic crypto platforms on July 1, KNF claims

Poland’s Financial Supervision Authority (KNF) has issued a statement pointing out that Polish crypto companies will not be able to operate legally after July 1, 2026.

The warning comes amid political battles over the fate of legislation designed to regulate the country’s market for digital assets, arguably the largest in Eastern Europe, in accordance with the latest EU rules.

A controversial bill, proposed by the government of Prime Minister Donald Tusk, was vetoed late last year by the newly elected President Karol Nawrocki.

Since then, the draft law was passed again by the two houses of parliament in Warsaw, the Sejm and the Senate, with insignificant changes, and the head of state is likely to stop it for a second time.

Meanwhile, the KNF is beginning to pressure Nawrocki, insisting that without the law, the activities of domestic crypto firms will become illegal, the Bitcoin.pl portal and Business Insider Poland reported.

The agency highlighted that each EU member state is required to designate a competent national authority that will be responsible for the supervisory duties described in the Union’s Markets in Crypto Assets (MiCA) framework.

Noting that the relevant Polish law hasn’t entered into force yet, in a press release on Tuesday, the regulator emphasized that no public body has been tasked yet with overseeing entities involved in the trading of cryptocurrencies, issuers of asset-backed tokens, and crypto service providers.

According to the KNF, domestic platforms will no longer be able to legally provide crypto-related services after July 1, 2026, until they obtain proper authorization under MiCA. And as the deadline cannot be extended, the only option will be to establish their operations abroad.

KNF stirs another controversy over crypto regulation in Poland

What the financial watchdog seems to be suggesting is that Polish crypto firms find another European jurisdiction to relocate, if Nawrocki rejects the adoption of Tusk’s law again.

“Of course, they have an alternative: they can register in another EU country, obtain a license there, and then continue operating in Poland without any worries,” Bitcoin.pl remarked.

While, in reality, little will change for the companies that choose to do so, the implications for the nation’s budget will be far greater as they will stop paying taxes in Poland, the article added.

In fact, what may force Polish platforms to leave is the legislation itself. Representatives of the industry have long warned it may kill local crypto business, as a result of rules and charges that go far beyond the requirements of MiCA.

In his motives for the veto, the president listed his own concerns, including that the crypto bill threatens the freedoms of Poles, their property, and even the stability of the state. The Tusk cabinet countered with a probe and accusations of attending to Russian interests.

The only meaningful change in the latest version of the Crypto-Asset Market Act over the vetoed one is the reduction of a “supervisory fee” payable to the KNF, from 0.4% to 0.1% of the revenue of platforms such as token issuers.

In January, the European Commission issued warnings to a dozen member states, including Poland, for failing to fully implement the EU’s crypto tax reporting rules, while flagging Hungary for potential non-compliance with MiCA.

Meanwhile, other nations, such as the Baltic states, for example, are already competing to become leading MiCA gateways on the Old Continent.

These include Estonia, where Polish crypto exchange Zondacrypto already opened an office and is applying for a license, and Latvia, which is luring Polish crypto firms as well, as reported by Cryptopolitan.

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