MiCA in Poland - obtaining CASP license

Introduction

Dear Client,

Thank you for your interest in our assistance with obtaining a CASP license in Poland. Allow me to officially introduce myself. My name is Radomir Studziński, and I am an Attorney-at-Law and Executive Partner at Studziński R & Associates, a law firm based in Poland. It is a pleasure to make your acquaintance.

I would like to emphasize that all matters related to your inquiry, including any factual background and details discussed during our conversation, are protected by legal professional privilege.

I am registered with the Polish Bar Association under No. ŁD-2325 and operate as a licensed law firm. Our law firm holds civil liability insurance coverage of EUR 350,000 through PZU SA, the largest insurance company in Poland, in which the State Treasury of Poland holds a 34.1875% stake.

I am delighted that you are considering partnering with our firm to handle matters related to obtaining the Crypto-Asset Service Provider (CASP) license. We prioritize our relationships with regular partners and are committed to ensuring a high level of care and attention in every business interaction.

Our law firm specializes primarily in corporate and AML law, offering support to both Polish and foreign companies in various aspects of business operations, including:

  • Commercial matters
  • AML and payment services
  • Contract preparation and legal verification
  • Representation before authorities in Poland

Since late 2021, we have successfully assisted approximately 150 Polish and international companies in navigating the process of registration in the Polish VASP Register. Our law firm 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.

CASP license in Poland route map

Obtaining a CASP license in Poland involves a structured and meticulous process to ensure compliance with national and EU regulations. Our route map includes the following key steps:

  • Step 1: Initial Consultation and Business Assessment
  • Step 2: Documentation Preparation and Legal Work
  • Step 3: Application Submission, Regulatory Communication, and Post-Submission Support
  • Step 4: Ongoing Compliance Support

Step 1: Initial Consultation and 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
  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 will be provided reporttailored action plan will be developed to guide the Client through the documentation and application process, ensuring that the business is well-prepared for the subsequent steps of the CASP license acquisition. Among others, report will include:

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.

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, who are critical for obtaining regulatory approval.

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.

Budget of Step 1:

In Step 1: Initial Consultation and Business Assessment, our law firm offers flat fee model, giving Clients greater cost transparency and predictability. The remuneration of providing Client with Step 1 report is EUR 1.950.

If the Client has not yet established a company in Poland, the above amount will be credited towards the law firm’s fee for company formation service. The establishment of a company in Poland with a share capital of PLN 600,000 (EUR 125,000) is subject to a fixed fee of EUR 1,900. This amount covers all expenses associated with the company’s formation, except for the capital tax of EUR 700.

Step 2: Documentation Preparation and Legal Work

The Documentation Preparation phase is essential for building a strong application to obtain a CASP (Crypto-Asset Service Provider) license. It requires compiling and preparation of 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 will 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.

Budget of Step 2:

Pricing the Client for Step 2: Documentation Preparation involves considering several factors, including the complexity of the work, the division of tasks between the law firm and the Client, the time commitment, and any specialized expertise required. Given that this step involves significant legal and compliance work, a flat fee per document or a project-based flat fee is often the most transparent and Client-friendly option. This model ensures that the Client understands what they are paying for, while the law firm can manage its resources effectively. In summary, the remuneration for our services is determined on an individual basis in respect to this step.

Step 3: Application Submission, Regulatory Communication, and Post-Submission Support

After completing the documentation in Step 2, the process transitions to the submission of the CASP license application, managing ongoing communications with the Polish Financial Supervision Authority (KNF), and addressing any follow-up queries or requests from regulator.

 This step involves:

  1. Final Review and Application Submission
  • Document Review: Before submission, the law firm will conduct a final review of all application documents to ensure compliance with applicable laws and regulations, ensuring completeness and accuracy.
  • Client Collaboration: The Client will provide final confirmations or sign-offs on all documents, particularly regarding the accuracy of business data and internal governance information.
  • Formal Submission: The law firm will submit the application and all accompanying documents to the KNF on behalf of the Client, ensuring the process is followed correctly and within regulatory timelines.
  1. Regulatory Communication and Queries Management
  • Primary Point of Contact: The law firm will act as the Client’s main representative with the KNF. This includes responding to any requests for additional information or clarification that the KNF might have during their review of the application.
  • Clarifications and Modifications: Should the KNF request adjustments or clarifications to any part of the application (e.g., additional details about internal controls or risk management procedures), the law firm will coordinate with the Client to prepare and submit the necessary updates or explanations.
  • Regular Updates: The law firm will provide the Client with regular updates on the status of the application and communicate any potential delays or additional steps required by the regulator.
  1. Post-Submission Support
  • Handling Follow-Up Requests: As part of the regulatory review process, the KNF may request additional documents or clarifications after the application has been submitted. The law firm will manage these requests in coordination with the Client.
  • Addressing Feedback or Concerns: If the KNF identifies any issues or raises concerns about the application, the law firm will work closely with the Client to resolve them. This might involve revising certain sections of the documentation or providing additional justification for specific business practices.
  • Final Decision Follow-Up: Once the KNF has completed their review, the law firm will assist the Client in understanding and complying with any conditions or requirements attached to the license approval. In the case of any rejections or deferrals, the law firm will guide the Client on how to address the issues and resubmit if necessary.

Budget of Step 3:

Given the specific nature of this step, our law firm charges a retainer fee.
A retainer of EUR 4.500 covers 30 hours of work for the submission process and regulatory communication. If the scope of post-submission work exceeds initial expectations, additional hours will be billed at EUR 150 per hour.

Step 4: Ongoing Compliance Support

Once the application has been successfully submitted and the Polish Financial Supervision Authority (KNF) grants the Crypto-Asset Service Provider (CASP) license, the focus shifts to maintaining compliance with regulatory requirements. This step ensures that the Client’s operations continue to meet the obligations imposed by the CASP license, including anti-money laundering (AML) compliance, reporting requirements, and potential audits. This step may include:

Ongoing Legal Support: Beyond compliance, our law firm can provide ongoing legal advisory services, helping the Client navigate potential legal challenges, disputes, or changes in the regulatory environment.

Reporting obligations: Our law firm supports clients in preparation and submission via Regulator’s online system Suspicious Activity Reports and Quarterly Reports of statistical data.

Strategic Advice: As the crypto industry evolves, our law firm can provide strategic advice on regulatory trends, competitive advantages, and risk management, helping the Client maintain a strong position in the market while staying compliant.

Monitoring Regulatory Changes: Cryptocurrency regulations are evolving rapidly, both at the national level (in Poland) and across the EU. The law firm will provide the Client with regular updates on any relevant legal and regulatory changes, helping the Client stay ahead of compliance requirements.

Conclusion

Obtaining a CASP license in Poland is a complex endeavor that requires expert legal guidance and close collaboration. Our law firm is dedicated to providing you with the highest level of legal support to navigate this process successfully. We look forward to the opportunity to work with you and contribute to your venture’s growth and compliance.

Please feel free to contact us at +48 507 116 116 or office@lawfirmpoland.com to schedule an initial consultation or if you have any questions regarding this proposal.