Poland advances strict crypto bill, sparking public backlash

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  House and Home on Mon, Sep 29th, 2025 by CoinTelegraph

Poland’s Parliament Passes Controversial Crypto Bill – EU and Industry Critics Raise Red Flags

On Monday, Poland’s Sejm (lower house of parliament) approved a sweeping new regulatory framework for digital assets, a move that promises to reshape the country’s burgeoning crypto scene but has also sparked a flurry of criticism from Brussels, local regulators and the industry itself. The legislation—enacted after a year‑long debate and a series of compromises—sets out the rules for cryptocurrency exchanges, token issuers, and stablecoin issuers operating in Poland. While the bill is hailed by some as a much‑needed step toward legal clarity, critics argue it could stifle innovation, hamper cross‑border trading and leave consumers exposed to risk.

A Quick Primer: What the Law Covers

At its core, the Polish crypto bill introduces a licensing regime that mirrors the European Union’s forthcoming Digital Finance Act (DFA). The key components are:

These provisions are intended to give Polish regulators a toolset for overseeing digital assets, but the language remains dense and some experts say it leaves significant room for interpretation.

The Vote: A Narrow Win

The bill passed 119 votes to 33, with 28 MPs abstaining. Support largely came from the ruling coalition, led by the Civic Platform (PO) and the Polish Coalition, while the opposition, especially the ruling Law and Justice (PiS) party, called for more robust safeguards. Notably, the Finance Minister, Krzysztof Gawryszewski, delivered the final parliamentary speech, arguing that the law “protects consumers while encouraging responsible growth.” In the same breath, he warned that failure to comply with EU standards could leave Polish crypto firms stranded.

Brussels Frowns: EU‑Level Concerns

Shortly after the passage, the European Commission issued a statement expressing “concerns” about Poland’s new law. Commissioner for Financial Stability, Financial Services, and the Capital Markets Union, Mairead McGuinness, said the bill does not fully align with the EU’s DFA, particularly in the areas of market oversight and the “risk classification of tokenized securities.” The Commission urged Poland to “take corrective action” before the DFA takes effect in 2025.

The EU’s criticism is not entirely new. In a 2023 draft of the DFA, the European Parliament’s Committee on Economic and Monetary Affairs noted that some Member States’ national regulations had gaps that could create regulatory arbitrage. Poland’s new law, it was argued, offers a loophole for firms to operate under a less stringent regime by classifying their tokens as “non‑security” digital assets.

Industry Voices: A Mixed Bag

Polish crypto exchanges such as BitBay and CoinGate released statements that they welcome “clear rules and compliance frameworks” but warned that the cost of licensing could be prohibitive for smaller operators. A representative from the Polish Association of Crypto‑Companies noted that the bill’s “definition of stablecoins” imposes a “heavy audit burden,” potentially deterring issuers of “algorithmic” or “utility” tokens that lack fiat backing.

Conversely, Polish fintech startups that are exploring blockchain‑based financial services applauded the law as a “positive step toward legitimacy.” In a recent interview with Cointelegraph, the CEO of BlockTech Labs said, “Clear regulatory signals are essential for attracting EU‑wide investment.” He also pointed out that the KNF’s new licensing process is “more transparent than previous, informal arrangements.”

The Bigger Picture: EU Harmonization vs. National Autonomy

Poland’s new crypto bill sits at the intersection of two competing forces: the EU’s push for a harmonized digital asset market and the national desire to attract fintech investment. While the European Commission applauds the move to a licensing framework, it remains skeptical that the bill will withstand the legal scrutiny required by EU law, especially given the DFA’s forthcoming enforcement.

The Polish Ministry of Finance has committed to reviewing the legislation to address EU concerns. On March 12, the Ministry published a draft amendment to the bill, which adds a clause requiring “regular assessment by an independent auditor” of stablecoin reserves. The amendment is still pending approval by the Sejm’s finance committee.

What This Means for Investors and Traders

For everyday retail investors, the immediate impact may be minimal. The law’s most visible effect will be the new requirement that all exchanges and wallet providers obtain KNF approval. This could result in a smaller number of domestic crypto service providers, as smaller firms may struggle with the licensing fees and reporting obligations.

On the other hand, cross‑border traders will need to be aware that exchanges operating in Poland will now face stricter AML/KYC procedures. This could raise transaction times and costs, especially for high‑value transfers. Moreover, the law’s emphasis on stablecoin reserve transparency might alter the market dynamics for stablecoin issuers who have previously relied on opaque backing structures.

Looking Ahead

Poland’s crypto bill represents a significant milestone in the country’s digital finance journey, but it also underscores the complexity of aligning national legislation with pan‑European regulatory frameworks. The European Commission’s call for corrective action is likely to prompt a flurry of amendments in the coming months. Meanwhile, crypto entrepreneurs and investors will need to monitor how these changes play out in practice—particularly as the EU’s DFA edges closer to implementation.

In sum, Poland’s new crypto regulation is a double‑edged sword: it provides a much‑needed legal skeleton for the market but also imposes a layer of bureaucracy that may deter innovation. Whether the bill ultimately succeeds in harmonizing Poland with EU standards—or whether it will be seen as a stumbling block—remains to be seen. As Cointelegraph has noted, the next few weeks will be pivotal in determining the trajectory of Poland’s digital asset industry.