CASP crypto license in Poland under MiCA
The Markets in Crypto-Assets Regulation (MiCA) will come into full effect in Poland on December 30, 2024. The existing regulations concerning the entry into the Polish Register of Virtual Currencies will cease to apply, and obtaining a license for activities related to crypto-assets in Poland will be subject to a completely different procedure based on the MiCA regulation.
Poland provides a highly favorable environment for obtaining a Crypto Asset Service Provider (CASP) license. The Polish regulations implementing MiCA do not impose stricter requirements than those outlined in the European framework for acquiring a crypto license. As a result, Poland’s regulatory landscape under MiCA offers a more favorable passporting process for crypto businesses compared to other EU countries.
Obtaining CASP license route map
Obtaining a CASP license in Poland involves a structured and meticulous process to ensure compliance with national and EU regulations. Our Law Firm in Poland is widely regarded as one of the most reputable legal practices in the field of cryptocurrency regulation. Having started providing legal services in this field in 2016, it has since become our core area of expertise.
The process of obtaining a crypto license in Poland can be organized into the following stages:
- Company Formation in Poland – If there is not yet registered business activity in Poland
- Business Assessment and Defining Regulatory Framework
- Documentation Preparation and Legal Work
- Application Submission, Regulatory Communication, and Post-Submission Compliance
It is important to emphasize that obtaining a CASP license under MiCA requires a tailored, individualized approach. Unfortunately, a “ready-made” solution cannot be offered. Each project requires a customized action plan and a set of internal documentation that will be included with the application for obtaining a crypto license in Poland. Not getting enough Client involvement in this process will stop them from getting CASP authorization.
Business Assessment
The first step involves an in-depth consultation to understand the Client’s business model and activities. This is crucial because the scope and type of crypto-asset services offered will determine the regulatory requirements. The main tasks include:
1.Understanding the Client’s business model, including, inter alia, determination of the minimal capital requirements and scope of offered services:
- providing custody and administration of crypto-assets on behalf of clients;
- operation of a trading platform for crypto-assets;
- exchange of crypto-assets for funds;
- exchange of crypto-assets for other crypto-assets;
- execution of orders for crypto-assets on behalf of clients;
- placing of crypto-assets;
- reception and transmission of orders for crypto-assets on behalf of clients;
- providing advice on crypto-assets;
- providing portfolio management on crypto-assets;
- providing transfer services for crypto-assets on behalf of clients;
2. Determining the Regulatory Scope
3.Understanding potential compliance risks
Outcome of Step 1
By the end of the Initial Consultation and Business Assessment, the Client will have a clear understanding of the regulatory landscape, specific compliance obligations, and any potential challenges. As a result of this step Client should have developed tailored action plan to guide through the documentation and application process, ensuring that the business is well-prepared for the subsequent steps of the CASP license acquisition. Among others, Client should be equipped with assessment which contains:
1. Regulatory Recommendations:
- Clarification of the specific regulatory requirements that apply to the Client’s business model.
- Recommendations on additional legal, compliance, or operational steps that need to be taken to prepare for the CASP application process.
2. Internal Control Framework:
- Guidance on the implementation or improvement of AML compliance measures.
- Recommendations for establishing a governance framework and appointing key personnel, such as compliance officers and risk managers, who are critical for obtaining regulatory approval.
3. Timeline and Next Steps:
- A proposed timeline for completing the remaining steps of the CASP application process, including document preparation, internal restructuring (if needed), and submission deadlines.
- A breakdown of responsibilities, ensuring that both the law firm and the Client are aligned on the tasks ahead.
This phase is critical for minimizing delays and ensuring that the application process is as smooth and efficient as possible. thre
Documentation Preparation and Legal Work
The Documentation Preparation phase is essential for building a strong application to obtain a CASP license. It requires compiling and submitting a wide range of documents to demonstrate that the applicant meets the regulatory standards. It is essential to clearly define which documents will be prepared by the law firm and which will require input or preparation from the Client. Collaboration is key to ensuring that all required documents are accurate, compliant with regulations, and submitted in a timely manner. The division of responsibilities will depend on the specific expertise of the law firm (legal, compliance) and the internal knowledge and resources available within the Client’s organization (corporate and operational information).
Outcome of Step 2:
After completing the Documentation Preparation step, the Client should have compiled a comprehensive set of documents that fully outline the Client’s operational, governance, and compliance frameworks. These documents are essential for ensuring the Polish Regulator that the applicant is well-prepared to operate a secure, compliant, and sustainable crypto-asset service in Poland.
Once these documents are prepared and finalized, they will be submitted as part of the formal CASP license application, marking the completion of a crucial stage in the licensing process.
Step 3: Application Submission, Regulatory Communication, and Post-Submission Support
After completing the documentation in Step 2, the process transitions to the submitting of the CASP license application, managing ongoing communications with the Polish Financial Supervision Authority (KNF), and addressing any follow-up queries or requests from regulators. This step involves:
- Final Review and Application Submission
- Regulatory Communication and Queries Management
- Post-Submission Support
Updates and Guidelines
Our law firm in Poland is currently focused on tracking the regulations implementing MiCA into the Polish legal framework and their changes. We are continuously refining solutions for obtaining a CASP license in Poland. We also regularly publish our insights and opinions in the form of articles: