This article provides a detailed overview of the rules and regulations governing the crypto space in Poland, including the legal status of cryptocurrencies, registration requirements, compliance obligations, and taxation policies.
Legal Status of Cryptocurrencies in Poland
In Poland, cryptocurrencies like Bitcoin, Ethereum, and other digital assets are recognized as legal, but they are not considered legal tender. Instead, they are classified as digital representations of value that can be transferred or stored electronically. Cryptocurrencies are viewed as property or assets rather than a form of money, meaning they can be used in financial transactions, traded on exchanges, or held as investments.
This legal stance allows individuals and businesses to engage in cryptocurrency-related activities, but it also places the onus on businesses to comply with Poland’s broader financial and regulatory framework.
Registration as a Virtual Asset Service Provider (VASP)
One of the central regulatory requirements for cryptocurrency businesses in Poland is the need to register as a Virtual Asset Service Provider (VASP). This requirement was introduced as part of the implementation of the European Union’s 5th and 6th Anti-Money Laundering Directives (AMLD5 and AMLD6). These directives were designed to improve transparency, combat money laundering, and prevent the financing of terrorism through cryptocurrencies.
Under Polish law, any business that provides virtual asset services, such as cryptocurrency exchanges, wallet services, or payment processors, must register with the Central Register of Beneficial Owners (CRBR). The Polish Ministry of Finance oversees this registration process.
Who Needs to Register?
Any company offering the following services must register as a VASP:
- Cryptocurrency exchanges (buying, selling, or exchanging cryptocurrencies)
- Wallet providers (custody services for cryptocurrencies)
- Crypto payment processors
- Other virtual asset-related services
VASP Registration Requirements
To successfully register as a VASP in Poland, businesses must meet the following requirements:
- Business Entity Registration: The company must be legally registered in Poland or the European Economic Area (EEA) to offer virtual asset services.
- Fit and Proper Test: Company representatives (including board members and management) must pass a “fit and proper” test, demonstrating that they have the necessary qualifications and clean criminal records to run a VASP.
- AML/KYC Compliance: VASPs must implement robust anti-money laundering (AML) and know-your-customer (KYC) procedures in accordance with both Polish and EU regulations. This includes verifying customer identities, monitoring transactions, and reporting suspicious activities.
- Internal Policies: VASPs must have formal internal policies and procedures to ensure compliance with regulatory requirements, such as regular risk assessments, staff training, and record-keeping practices.
Failure to register as a VASP or comply with the regulations can result in significant penalties, including fines and business suspension.
Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Compliance
Poland’s crypto regulation places a strong emphasis on combating money laundering and terrorism financing. Businesses in the crypto space must adhere to the same AML and CTF regulations that apply to traditional financial institutions.
Key compliance requirements include:
- Customer Due Diligence (CDD): VASPs must verify the identities of their clients, especially in cases where transactions exceed certain thresholds, or there is suspicion of illicit activities.
- Suspicious Activity Reports (SARs): VASPs are required to file SARs with the General Inspector of Financial Information (GIIF) if they detect unusual or suspicious transactions.
- Record Keeping: Businesses must keep comprehensive records of transactions and customer data for a minimum period, as specified by law, to aid in investigations if needed.
- Risk-Based Approach: Companies must perform risk assessments to identify and mitigate risks related to money laundering and terrorism financing.
Non-compliance with these regulations can lead to severe consequences, including heavy fines, loss of business licenses, and criminal charges.
Taxation of Cryptocurrencies in Poland
Taxation of cryptocurrency activities in Poland is governed by existing tax laws, which classify cryptocurrencies as property or assets rather than currency. The key tax implications for individuals and businesses engaging in crypto transactions include:
Income Tax on Cryptocurrency Gains:
Any profits derived from cryptocurrency transactions are subject to income tax. This applies to both individuals and businesses. Profits are calculated as the difference between the selling price and the acquisition cost of the cryptocurrency.
- For individuals, profits from crypto transactions are taxed as part of their personal income, with rates ranging from 17% to 32% depending on the tax bracket.
- For businesses, profits are taxed under corporate tax rules, with a standard rate of 19%.
Value-Added Tax (VAT):
The sale or exchange of cryptocurrencies is generally exempt from VAT, following the Court of Justice of the European Union’s ruling. However, services provided by crypto-related businesses, such as exchanges or payment processing, may still be subject to VAT.
Tax Reporting Obligations:
Individuals and businesses are required to report cryptocurrency income in their annual tax returns. Failure to properly report crypto earnings can lead to penalties.
Consumer Protection and Investor Safety
Although Poland has not introduced crypto-specific consumer protection laws, businesses operating in the crypto space must adhere to general Polish consumer protection regulations. These laws ensure that customers are treated fairly, contracts are transparent, and businesses are held accountable for delivering services as promised.
For investors, the Polish Financial Supervisory Authority (KNF) has issued warnings about the risks associated with cryptocurrency investments, including market volatility, fraud, and cyberattacks. The KNF does not directly regulate cryptocurrencies as securities unless they fall within the scope of existing financial instruments like securities tokens or derivatives. However, it actively monitors the market for illegal activities or misleading practices.
Future Regulatory Developments
Poland’s crypto regulation is likely to evolve in line with European Union developments, including the upcoming Markets in Crypto-Assets (MiCA) regulation, which aims to create a comprehensive EU-wide regulatory framework for crypto assets. MiCA is expected to introduce additional requirements for VASPs, including licensing standards, investor protections, and operational requirements for stablecoins and other digital assets.
Conclusion
Poland offers a structured yet adaptable regulatory environment for cryptocurrency businesses. By adhering to the VASP registration requirements, complying with AML/KYC obligations, and understanding the tax implications of crypto transactions, businesses can operate legally and safely in the Polish market. As the country continues to align its crypto regulations with the broader EU framework, Poland remains an attractive location for cryptocurrency ventures looking to operate within a regulated space while maintaining flexibility for innovation.
EN 
RU 
