In 2014, the Polish government did not acknowledge Bitcoin as an official currency but clarified that contracts tied to its index are legitimate financial instruments governed by standard regulations. While not legally defined, cryptocurrencies are not on par with traditional fiat currencies, yet their legal trading within the nation is acknowledged. Activities such as mining, buying, and selling cryptocurrencies are not considered illegal.
From November 2021, the management of virtual assets in Poland has been subject to regulation. Firms involved in these operations must register with the government in a dedicated cryptocurrency business registry and acquire a specific cryptocurrency license in Poland. Registering these business entities is in line with Polish legal standards.
Overview of Poland’s Cryptocurrency Regulatory Framework
In Poland, the cryptocurrency sector is now independently regulated and overseen by the Tax Administration Chamber, which manages the Register of Virtual Currencies. This registry tracks all crypto-related activities.
Polish firms must obtain a special cryptocurrency license and register in this system if they are engaged in such activities:
- Currency exchange between virtual and fiat currencies.
- Trading in virtual currencies.
- Management of virtual currency accounts (wallets).
- Services for the exchange of virtual currencies (brokerage services).
The Ministry of Finance of Poland supervises the cryptocurrency company registry, which became active on November 1, 2021. Before this date, existing companies in the virtual currency field were given a six-month grace period to comply with new standards and complete the licensing process.
For new cryptocurrency enterprises established after November 1, 2021, registration in this registry is a prerequisite before commencing operations.
Cryptocurrency Licensing Requirements
In Poland, part of the European and Schengen areas, cryptocurrency licensing incorporates national and EU regulations. To enter the European market and secure a cryptocurrency exchange license, the following key steps are essential:
- Forming a Polish company with a physical office presence. This also applies to non-residents, who can opt for limited liability companies like SP z.o.o and SA.
- Opening a bank account and depositing the entire authorized capital upon registration.
- Hiring staff and directors with financial knowledge and educational qualifications.
- Developing a comprehensive business plan, including technical and software aspects for exchange operations.
- Formulating AML/KYC policies, along with internal registers and control measures.
Support and Benefits for Crypto Business in Poland
In Poland, the cryptocurrency business receives support from various authorities:
- The Chamber of Commerce and Industry for Blockchain and New Technologies defends the sector’s interests, harmonizing them with Polish legislation.
- The Innovation Center interacts with fintech companies and offers virtual sandboxes to help new fintech startups.
The main advantages for cryptocurrency firms:
- Fast project implementation.
- The ability to purchase ready-to-use solutions.
- Exemption from equity capital requirements.
- No mandatory need for local staff.
Fundamental Considerations for Establishing a Cryptocurrency Exchange Business
Various countries enforce unique laws governing cryptocurrency exchanges. Individuals aspiring to venture into this sector should anticipate diligently adhering to financial surveillance, anti-money laundering (AML) stipulations, and anti-terrorism financing, besides guaranteeing client asset security. Prifinance professionals offer proficient aid in these domains, as evidenced by favorable client testimonials on independent review platforms.
Trackback from your site.