Poland wants to regulate cryptocurrency in 2024

After several years of no official recognition of cryptocurrencies, the Polish Financial Supervision Authority (KNF) plans to start supervising digital assets by the end of this year.

The bill is a response to the European #MiCA regulation approved by the EU Council in May 2023. It is expected to be put before the government in the second quarter of 2024.

For the local industry, this development means the creation of a clear legislative framework. The KNF will have the power to impose financial penalties on companies operating in the cryptocurrency sector. The move is aimed at ensuring compliance with #EU regulations and protecting investors.

The proposed rules involve several significant changes for Polish crypto-enthusiasts and local cryptocurrency companies. KNF will be designated as the supervisory authority for cryptocurrency activity in Poland. Companies issuing crypto coins or providing crypto services will have to report their activities to the KNF and comply with the new rules. Failure to comply with the rules may result in fines or penalties from the KNF. Stricter rules on criminal penalties will also be introduced to increase consumer and investor protection.

The rules will also address the confidentiality of customer information obtained by cryptocurrency companies. In addition, regulations will be enacted to allow the use of #electronic contracts and statements that will have the same legal effect as paper documents.

With the adoption of these regulations, #Poland will join other European countries where the cryptocurrency market is monitored by local supervisory commissions. This includes the UK's Financial Conduct Authority (FCA), which recently issued new guidance amid excitement over the cryptocurrency market in the country.