The new year brings significant changes to the legal framework for Crypto Assets Service Providers in Poland and across Europe. On December 30, 2024, MiCA, Regulation (EU) 2023/1114, became applicable. However, Poland remains one of the few EU Member States that has not yet enacted legislation implementing MiCA solutions into its national legal framework.
This situation has introduced a little chaos among representatives of the crypto industry in Poland regarding the applicability of MiCA, the transitional period, and their overall legal situation.
The circumstances we find ourselves in are extremely interesting, and I will do my best to explain them here in depth. In this article, I will explain the current status of MiCA in Poland as of January 2025 and outline what it could mean for Polish VASPs registered before December 30, 2024. I will also discuss the implications for entities seeking to apply for a CASP license in Poland.
Polish Act on Crypto Assets Market
As I have frequently mentioned on the Law Firm in Poland blog, work on the new Polish Crypto Asset Market Act has been ongoing for at least a year.The first draft of the act was published in February 2024 and has undergone two rounds of public consultation.
With the direct application of MiCA now in effect, one might ask whether a new Polish law on the crypto asset market is even necessary. After all, MiCA is a regulation of the European Parliament and Council of the EU, which means it is directly applicable in all EU Member States without requiring national implementation. Nevertheless, a Polish law is essential because it needs to introduce mechanisms necessary for MiCA’s functioning within the Polish legal framework. For instance, national legislation must designate which authority will act as the regulator overseeing CASPs. Without such a provision in Polish law, no national authority can process CASP license applications or supervise their activities.
Below, I provide a link to an article briefly discussing the most important aspects of the current draft of the Polish Act on the Crypto-Asset Market:
MiCA in Poland – update December 2024
The current version of the draft can be accessed via this link. However, I must emphasize that the content of the act may still change, as it has not yet been submitted to the Polish Parliament (Sejm). Further amendments could be introduced.
Poland’s delay in adopting supporting legislation
Poland has fallen behind in enacting the necessary national legislation to enable MiCA’s full functionality. Only Portugal and Belgium have similarly failed to meet the deadline. Unfortunately, it is impossible to predict when the Polish act will be passed. Currently bill is not submitted to Polish Parliament:
If I were to guess, I would estimate it will be enacted by the end of February 2025. Below is the link to track the progress of the adoption of the new legislation:
https://legislacja.gov.pl/projekt/12382311
Consequences of the lack of legislation in Poland – Good news for Polish VASPs?
According to MiCA, EU Member States had the option of implementing ‘transitional measures’ that would allow already existing VASPs to continue business during the transitional phase of MiCA (i.e., the period of 18-months after full application in December 2024):
The draft of the Polish law proposed shortening this period to 6 months (more information about the transition period can be found here).
According to industry representatives, since Poland did not pass its national crypto legislation before 30/12/2024, the transitional period should apply in full (18 months), allowing all registered VASPs to continue their activities without obtaining a CASP license until July 2026.
Key points to understand above position:
- MiCA’s Grandfathering Period:
- According to MiCA, any VASP that was legally operating before 30/12/2024, can continue providing services until 1/07/2026, without a CASP license.
- This transitional period is standardized across the EU unless a Member State took action to shorten it before the period began. Poland did not.
- Inability to shorten the period:
- MiCA is an EU regulation, which has direct and binding applicability in all Member States.
- National laws cannot override MiCA, and any change to the transitional period would require an amendment to the regulation itself.
- Additionally, under democratic legal principles, rights that have already been granted (in this case, the right to operate during the transitional period) cannot be revoked without just cause.
Such an interpretation of the situation resulting from the failure to pass the Polish Crypto Asset Market Act provides VASPs in Poland with a unique opportunity to adapt to MiCA without immediate regulatory pressure. Polish VASPs can use this time to:
- Align their operations with MiCA’s requirements.
- Develop long-term compliance strategies.
- Explore opportunities for growth in a more stable regulatory environment.
At the same time, the delay in implementing Poland’s national crypto law highlights broader challenges in aligning domestic legal frameworks with EU regulations.
Alternative interpretation of the Polish Financial Supervision Authority (KNF)
On 2/01/2025, the Polish Financial Supervision Authority (KNF) published a statement on the application of the MiCA Regulation during the transitional period.
The full text of the statement is available here. As anticipated, KNF interprets the situation differently. In summary, KNF claims that the adoption of the Polish Crypto Asset Market Act after 30/12/2024, does not eliminate the possibility of shortening the transitional period. Consequently, a new act will be able to limit this period. However, KNF’s statement does not address the arguments presented by crypto industry.
If legislation is passed that limits the transitional period, disputes between previously registered VASPs and KNF will be inevitable, especially if entities are removed from the VASP register.
I also maintain that being listed in the VASP register before 30/12/2024, is the sole requirement to benefit from the full 18-month transitional period. Any unlawful actions by the government, such as wrongful removal from the register, would provide grounds for affected entities to seek compensation from the State Treasury. This is my private and not binding opinion.
Negative consequences of the lack of a Polish legal framework for CASPs
The failure to pass the Polish Crypto Asset Market Act also has negative implications. Due to the absence of mechanisms in the Polish legal system to support MiCA’s implementation, it is currently impossible to submit an application for a CASP license. Applications submitted to the KNF will remain unprocessed until the Polish law is enacted.
However, this situation is only temporary. As I mentioned, I expect that the first CASP license applications in Poland can be submitted as early as February.
Furthermore, as of 30/12/2024, it is no longer possible to register as a VASP in Poland. Here is link to communicate of Tax Chamber in Katowice (holder of Polish VASP Register):
The provisions of the Polish AML Act – remain valid in the event of a conflict with the provisions of the MiCA and TFR regulations, but their scope of application is narrowed.
Consequently, in the opinion of the Director of the Chamber of Fiscal Administration in Katowice, as of December 30, 2024, it will no longer be possible to register new entities in the Register of Virtual Currency Activities.
The list of entities included in the VASP register has been finalized. The VASP register will continue to exist and it should remain operational throughout the entire transitional period.
