In Poland, the KNF, in line with the European Union’s MiCA framework, has been granted the authority to hold crypto-accounts for up to four days during a criminal investigation if there is suspicion of the transactions being linked to a crime. This preliminary step can only be extended up to six months with the approval of prosecutors. However, this regulation is causing pressure and uncertainty for crypto investors.
The lack of clear guidance leaves investors concerned about their accounts being frozen for a prolonged period. Moreover, the untransparent nature of officials can create an environment of uncertainty and potential misuse of authority. To further regulate the crypto market, the Revenue Department is introducing new tax legislation that will include cryptocurrency service providers in the tax net.
Authorities claim that these regulations align with MiCA’s expectations and the KNF is setting the pace for tighter controls in the cryptocurrency market. Freezing accounts is one of the measures the KNF is implementing to increase its effectiveness in regulating the market and protecting investors.
Poland’s crypto community is significant, with 15 million people involved, representing 15% of the country’s population. However, without defined regulations, it has been challenging to establish large cryptocurrency exchanges in the country. Some platforms have even moved their operations outside of Poland. The implementation of strict regulations in line with MiCA may pave the way for domestic cryptocurrency exchanges to be established. This could create a more promising environment for the crypto business in Poland, ultimately benefitting the population and improving their lives.
In addition to MiCA, there are other issues that the country is facing, such as the exploitation of cryptocurrency by groups like the Islamic State. To learn more about this and other global funding matters, be sure to stay informed.
