With the growing popularity of virtual currencies, whose physical symbol is the Bitcoin ATM, Poland has become a jurisdiction where cryptocurrency business (mining, sale and purchase of crypto assets) is regulated and supervised by the state authorities.

Polish financial markets are generally supervised by the Polish Financial Supervision Authority, which is responsible for ensuring the efficient functioning and development of the market and participates in the preparation of draft laws for the purpose of financial market supervision.

Cryptocurrency business is now a separately regulated area governed by the Tax Administration, which maintains a register of crypto activities called the Virtual Currency Register.

Crypto companies operating in Poland are supported by the following initiatives:

• The Chamber of Blockchain and New Technologies represents the interests of the industry and, in accordance with applicable Polish law,

• Innovation Hub Regulators consult with fintech companies and provide a virtual sandbox to support the development of new fintech startups

Anti-Money Laundering and Counter-Terrorism Financing Laws

The main law and regulation for combating money laundering and terrorist financing in the cryptocurrency and other financial markets in Poland is the Anti-Money Laundering and Combating Terrorist Financing Act of March 1, 2018, also known as the Polish AML Law. This is one of the first AML-specific terms in Polish legislation that clearly defines “virtual currency” and its regulation in the country. The law sets out basic AML principles for virtual currency institutions that conduct the following activities:

• Cryptocurrency trading

• Exchange virtual currency into legal tender

• Cryptocurrency Brokerage

• Providing and maintaining account services for virtual currencies (cryptocurrency wallets)

The Polish Attorney General for Financial Information is at the forefront of Poland's anti-money laundering and counter-terrorist financing system. Its goal is to increase transparency and prevent suspicious transactions.

The agency's mission includes:

• Enforcing compliance with the Polish AML Law

• Request transaction information from financial institutions

• Analyze information about financial market participants that may be associated with money laundering or terrorist financing

• Trading suspension and account blocking

• Cooperate with national agencies and other foreign agencies authorized to share information

• Assessing and reporting country risks related to money laundering and terrorist financing

• Develop strategies to combat money laundering and terrorist financing

• Imposing administrative penalties

• Communicate the scope of their work through public channels

Virtual currency companies are obliged to implement the following procedures:

• Clearly designate company management responsible for carrying out duties under the Polish AML Act

• Implement internal AML processes aimed at combating money laundering and terrorist financing

• Integrate KYC processes for customer identification and verification and assessing the risks associated with potential customers

• Report to the Polish Attorney General for Financial Information

• Design and conduct training programs for company employees responsible for implementing AML procedures

Competition and consumer protection

Under Polish law, there are no specific provisions for consumer protection in relation to cryptocurrencies. However, the Act on Consumer Rights of May 30, 2014, which regulates the economic activities of businesses that enter into contracts with consumers, applies to virtual currencies, regardless of the means of transaction. Like all market participants, businesses working with cryptocurrencies must comply with the Consumer Rights Act when entering into contracts with consumers, for example by respecting the right to withdraw from a contract provided for in the Consumer Rights Act.

As long as virtual currency is not considered electronic money, that is, it is considered a payment service, its circulation is not subject to the Payment Services Act.

In Poland, although there is no specific competition regulation for cryptocurrencies, the provisions of the Competition and Consumer Protection Act of February 16, 2007 generally apply. It deals with the following tasks:

• Regulation to promote and protect competition

• Protecting the interests of entrepreneurs and consumers in the public interest

• Preventing anti-competitive behavior

• Preventing acts that infringe upon the collective interests of consumers

• Application of clauses to prevent incorrect contract formats

• Preventing anti-competitive concentrations and mergers

New Cryptocurrency Regulations in the EU 2025

Cryptocurrency regulation is constantly evolving in the European Union (of which Poland is a part). Therefore, in addition to Polish law, it is essential to monitor the rapidly evolving European legal framework that seeks to regulate cryptocurrency businesses operating in or from the EU.

For example, the European Commission is currently developing new KYC requirements to restrict virtual currency businesses from conducting transactions with unhosted wallets without first verifying the owner’s identity. The Commission proposes to remove the current 1,000 euro threshold, which means that all cryptocurrency transfers in the future will be subject to KYC procedures.

Virtual Currency Registration

Companies engaging in economic activities related to cryptocurrencies in Poland are legally required to register in the Virtual Currency Register maintained by the Tax Administration.

Companies engaged in the following activities must register:

• Convert virtual currency into legal tender

• Exchange between virtual currencies

• Providing and maintaining virtual currency accounts (wallets)

• Intermediary services for virtual currency exchange (brokerage business)

These activities also determine the type of license a virtual currency company should apply for. Companies are allowed to obtain one or all of the applicable licenses.

The registration is part of the revised KYC procedure. Any company that does not register before commencing crypto activities may be fined PLN 100,000 (approximately EUR 21,646). Before going through the mandatory crypto authorization procedure, crypto businesses must ensure compliance with specific legal requirements.

Requirements for Virtual Currency Companies

The process of setting up a cryptocurrency business company in Poland is the same as the process of setting up any other business company. The most popular type of cryptocurrency company in Poland is a limited liability company (Sp zoo), which can be established by one or more shareholders, all of whom can be foreign non-residents in Poland, and there is no need to hire local directors. It may take several weeks to open a new company in Poland, depending on the provision of the required documents and institutional procedures.

Key steps to open a new limited liability company in Poland:

• Prepare a unique company name for record keeping

• Drafting of power of attorney in case of remote registration

• Obtain a notarized copy of the director/company founder’s passport, with a notarial certificate

• Preparation of the articles of incorporation (the founding documents of the LLC must be prepared and signed before a Polish notary)

• A registered local office space is a prerequisite (a rental agreement is sufficient proof), a virtual office may also be an option

• Opening a corporate bank account in Poland

• Transfer of authorized capital to a new account, with a minimum authorized capital of PLN 5,000 (approximately EUR 1,084), is subject to a 0.5% civil transaction tax

• Get the REGON (statistical) number

• Get a NIP (Tax Identification) number

• Apply for a VAT number

• Submit the company registration application to the National Court Register (KRS); the information required includes REGON number, NIP number and application for company registration to the Social Insurance Agency (registration fee is 500 Polish zł fine, about 108 euros, and approval may take up to 7 days)

• Appointment of the Company's Management Committee

In addition, before registering for a virtual currency registry, crypto companies must prove that they have designed a transparent and reliable operating framework.

Specific requirements for virtual currency companies:

• The business plan must include documentation of the hardware and software used to encrypt business operations

• Internal processes must be established to comply with AML/KYC standards and ensure risk control

• Hiring an AML officer who does not have to be a Polish citizen or resident; relevant professional experience is a prerequisite

It is important to note that all these documents must be submitted in Polish, which means that people who do not understand Polish and who do not hold documents in Polish will need the services of a sworn translator.

Many of the obligations of running a company in Poland can be completed online. If the company directors are foreign citizens who do not have a Polish personal identification number, PESEL, they can request this number in order to obtain a trusted profile that can be used to electronically sign applications, allowing them to use online business services.

Company directors and founders must meet the following requirements:

 No criminal record– The law enforcement authorities shall provide a certificate that the directors and founders have never been convicted of criminal or tax offences against public institutions and local governments, judicial administration, credibility of documents, property, economic transactions and civil law transactions, money and securities transactions or intentional financial crimes committed for material or personal gain.

 Proof of Professional and/or Academic Finance Experience – Directors and founders must demonstrate that they have at least 1 year of experience in the field of virtual currency business; if this condition cannot be met, they must take courses covering the legal and practical issues involving virtual currency business.

Virtual Currency Registration Process

Before starting to operate in Poland, every crypto company must go through a crypto authorization procedure and register with the Virtual Currency Registry.

The application can only be submitted electronically through the Electronic Platform of Public Administration Services (ePUAP). The application must be consistent with the facts and contain all the required documents. If all conditions are met, the Tax Administration will enter the company in the Virtual Currency Registry within 14 days from the date of receipt of the application. If there are errors, it is possible to request a correction of the application, but this may delay the consideration process.

The Polish regulator has not yet confirmed regular fees for the supervision of virtual currency companies in Poland.

Main stages of the application process:

• Accepting registration applications

• Verification Application

• Enter the registration or issue a decision to refuse registration

Key steps for applicants:

1. Preparation of a declaration of compliance with legal requirements for conducting activities in the field of virtual currencies

2. Prepare a criminal record statement

3. Fill out the ePUAP application form

4. Pay a stamp duty of PLN 616 (approximately EUR 133) when submitting your application (a payment confirmation must be attached to the application form)

• Payments must be made to the Katowice City Hall bank account: PKO BP SA no. 52 1020 2313 2672 0211 1111 1111 (specify “Fees for Entry into the Register of Cryptocurrency Events”)

5. Applicants can choose to request a certificate of virtual currency registration, which can be issued within 7 days of being registered. However, the stamp duty must be paid when submitting the application, which is 17 Polish z (about 4 euros).

The decision to refuse the entry of a virtual currency into the Register cannot be appealed, but a new application can be submitted for reconsideration. The application can be submitted electronically via the ePUAP platform or by post to the following address: ul. Paderewskiego 32b, 40-282 Katowice, Director's Office of the Tax Administration in Katowice.

Reporting requirements

All types of companies established in Poland are obliged to comply with annual reporting and auditing requirements. Annual financial statements and annual income tax returns must be submitted to the Electronic Tax Office. In addition, cryptocurrency companies are obliged to submit AML reports to the Attorney General for Financial Information. VAT reports are submitted monthly or quarterly.

On the other hand, a certified audit is only required if a limited liability company meets at least two of the following conditions: annual net income exceeds EUR 5 million, annual turnover exceeds EUR 2.5 million, and annual employment is 50 or more employees.

Cryptocurrency Regulation in Poland

Taxation of Virtual Currency Companies

In Poland, there are no specific taxes on cryptocurrencies, but crypto companies operating in Poland are subject to various existing taxes depending on their legal structure, which may be exempt from tax in some cases, considering that Poland has signed agreements for the avoidance of double taxation with more than 80 countries.

The most common taxes applicable to Polish LLCs include corporate income tax, personal income tax, value-added tax, stamp duty, real estate tax, and consumption tax. In addition, like any other employer, virtual currency companies must pay social insurance and health insurance to the Polish government if they employ employees.

Standard tax rates in Poland:

• Corporate income tax – 19% (9% if annual revenue does not exceed EUR 2 million)

• Personal income tax – 17% to 32% depending on the taxable income bracket

• VAT – 23%

• Dividend withholding tax – 19%

When paying Polish corporate income tax, the following aspects are worth paying attention to:

• Income from the exchange of virtual currency for legal tender, goods, services, or other property interests will be treated as capital gains income.

• The value of virtual currency obtained by exchanging it for other virtual currencies is not considered income.

• Expenses associated with virtual currency exchange will not be considered revenue generating costs.

• Virtual currency transfer income is the difference between gross income from virtual currency transfers and the costs of producing the income in a given tax year.

• In order to enjoy preferential tax rates or tax exemptions under relevant double taxation agreements, the taxpayer's tax residence must be proved by a tax residence certification document.

• At the end of the tax year that coincides with the calendar year, the taxpayer must indicate on the tax return the income received from the transfer of virtual currency during that tax year and calculate the income tax payable.

Key aspects to note when registering as a VAT taxpayer:

• Under EU law, services involving the exchange of cryptocurrencies for traditional currencies and vice versa are not subject to VAT.

• Other products and services are subject to VAT.

Suspension of virtual currency activities

In case of suspension of virtual currency activities, the company can apply for removal from the Virtual Currency Register. No stamp duty is required for this application. Information on removal from the Virtual Currency Register will appear in the register within 14 days from the date of finality of the decision.

The notification regarding the suspension of virtual currency activities is mandatory. The notification regarding the suspension of virtual currency activities must be made by submitting an electronic form via ePuap. The notification should be submitted within 14 days from the date of suspension of activities. In the notification, the company should indicate the date on which the activities were suspended, which should not be earlier than the date of registration and should not be a future date.

The agency responsible for maintaining the virtual currency register can remove a company from the register if:

• After obtaining information about the removal of the company from the Central Economic Activity Information and Register or the State Court Register

• The company does not meet the conditions required by law for carrying out virtual currency activities

• The company is incompatible with the actual situation

Poland

capital	population	currency	gross domestic product
Warsaw	38,036,118	PLN	$19,023

Poland Crypto Regulation in 2023

Despite the popularity of cryptocurrencies and the attendant regulatory issues, Poland remains a relatively lenient jurisdiction for cryptocurrency businesses as crypto-specific regulatory measures are slowly being introduced at the national level, largely due to the EU regulatory framework that applies to member states.

New EU regulations applicable to Poland

The EU continues to advance cryptocurrency regulation by tightening and clarifying the rules applicable to crypto-asset service providers (CASPs) operating in Poland. In 2022, the Economic and Monetary Affairs Committee approved the Markets in Crypto-Assets (MiCA) Regulation for a vote by the European Parliament and EU member states. MiCA's regulatory framework aims to prevent market manipulation, illegal disclosure of insider information, and insider trading.

These measures include an improved definition of insider information related to CASPs activities, as well as monitoring and enforcement mechanisms. MiCA is designed not only to provide legal certainty, prevent market manipulation, and safeguard stability, but also to encourage the development and adaptation of crypto-related products and services. Currently, MiCA does not include decentralized finance (DeFi) and non-fungible tokens (NFTs).

One of the key changes is related to environmental responsibility. When the new law comes into force, major CASPs will be forced to publish their energy consumption on their business websites and share data with national authorities. When it comes to more complex procedures, the European Securities and Markets Authority (ESMA) will soon develop technical standards for regulation. The purpose of this rule is to reduce the high carbon emissions of cryptocurrencies.

Anti-money laundering rules are set out in the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Directives and MiCA should not overlap. That is, the European Banking Supervisor (EBA) will be mandated to maintain a public register and conduct enhanced AML/CFT checks on non-compliant CASPs. Non-compliant CASPs are those whose parent companies are registered in countries classified as third countries by the EU, considered high-risk for AML activities, or listed as non-cooperative jurisdictions for tax purposes.

As for the supervision of stablecoins, this task will be given to the European Banking Authority (EBA). Stablecoin issuers operating within the EU will be required to establish sufficient liquid reserves in a 1:1 ratio, partly in the form of deposits. This will allow all stablecoin holders to obtain claims from the issuer at any time and free of charge. MiCA's regulations are expected to fully come into effect at the end of 2025 and will directly apply to cryptocurrency businesses in Poland.

Regulatory sandbox and support

In 2022, the EU agreed on final regulations for a pilot regime for DLT-based market infrastructures. It provides a legal framework for the trading and settlement of crypto assets that qualify under the Markets in Financial Instruments Directive 2 (MiFID 2). Similar to the sandbox approach, the pilot promotes safe experimentation with new technologies and serves as a means of gathering evidence to facilitate the possible subsequent establishment of a permanent framework.

The pilot is scheduled to launch in March 2023, with a review planned for 2026. Meanwhile, the European Securities and Markets Authority (ESMA) continues to consult on draft guidance on standard formats and templates to be applied to DLT, and is now engaging in a Q&A to assist with implementation.

In 2023, Polish cryptocurrency companies are supported by the following state initiatives:

• KNF’sInnovation Hub – The regulator supports the development of new technologies by consulting with fintech companies and offering a virtual sandbox

• The Chamber of Blockchain and New Technologies represents the interests of the industry under applicable Polish law

Cryptocurrency licensing in Poland by 2023

Poland has not yet introduced a full-fledged cryptocurrency licensing process, which includes licensing and regulatory fees, and the Tax Administration continues to issue Polish crypto authorizations, which are equivalent to cryptocurrency licenses. If you plan to offer crypto products or services in Poland and require a crypto license, you must first be listed in the Virtual Currency Register, which is part of the AML/KYC procedure.

Authorized companies that have obtained Polish encryption authorization can provide the following services:

• Fiat and crypto currency exchange

• Exchange between different cryptocurrencies

• Crypto Trading Brokerage

• Providing and maintaining cryptocurrency wallets

Applications for cryptographic authorization can be submitted online through the Electronic Platform of Public Administrative Services (ePUAP). It is worth noting that they must contain consistent factual information and be accompanied by all necessary documents. That said, any errors can be corrected, although this will usually lead to delays in the application process. If there are no grounds for rejecting the applicant, the authorization will be granted within 14 days of receipt of the application.