The EU MiCA Act came into effect, and Poland has become a new hot spot for Web3 entrepreneurship

With the implementation of the European Union's Regulation on the Regulation on the Regulation of the Crypto Asset Market (MiCA), the European Web3 market is ushering in new development opportunities. Among them, Poland, as a market with great potential, is attracting more and more attention from Web3 companies.

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Poland: A booming Web3 market

Strong economic strength

Poland is the sixth largest economy in the European Union and occupies an important position in the Central European economy. Despite its late start to the fintech ecosystem, Poland, as the largest financial services market in Central and Eastern Europe, is attracting a lot of talent and investment from the region, showing great potential.

a favored place for Web3 businesses

As an important business center in Central and Eastern Europe, Poland has attracted many companies to set up entities. As of 2024, the number of active VASP entities in Poland's register of virtual currency activity has exceeded 1,100, and it is also home to 126 Web 3.0 startups, including well-known enterprises such as billon and Golem Network.

Huge potential user base

With a population of about 38.26 million, Poland ranks fifth in the European Union. According to the survey, more than 94% of the Polish population is aware of cryptocurrencies, but only 6.2% have an in-depth understanding, indicating that there is still a lot of room for adoption in the market. Cryptocurrencies are mainly used as investment and speculative assets in Poland, with more than half of respondents using them for this purpose.

Poland Web3 Regulatory Framework

Key regulatory bodies

Poland's Financial Supervisory Authority (KNF) is the country's main financial regulator and is responsible for regulating a wide range of financial market participants, including Web3 businesses. The regulatory objective of the KNF is to ensure the stability, security and transparency of financial markets and to protect the interests of market participants.

Regulatory policy changes

With the entry into force of the MiCA Act, Poland is moving forward with domestic legislation to bring it into line with EU regulation. A draft of the Polish Law on the Market in Cryptoassets has been published, which significantly shortens the transition period provided for by MiCA. According to the draft, existing VASP entities are required to submit CASP license applications by June 30, 2025, and the VASP registration system will be completely abolished from October 1, 2025.

Penalties for non-compliance

After obtaining a CASP license, companies are required to strictly comply with the MiCA Act and the regulations on crypto assets in Poland. Violations can face a variety of penalties, including public warnings, suspension of operations, revocation of licenses, prohibition of managers from performing their duties, and more. Serious non-compliance can also result in hefty financial penalties of up to €1 million or twice the amount of non-compliance.

Poland Crypto Asset Tax Policy

Poland's regulations on the taxation of cryptoassets are relatively mature. Income generated from cryptocurrency trading is considered monetary capital income and is taxed at a flat rate of 19%. It is important to note that not only does exchanging virtual currency for fiat currency incur a tax liability, but also exchanging it for goods, services, or property. However, the exchange between cryptocurrencies is not taxable.

Conclusion

As an important economy in Central and Eastern Europe, Poland has an active Web3 user base and an ever-improving regulatory framework, which provides good development opportunities for Web3 companies. However, with the implementation of the MiCA Act and changes in local regulation, companies will also face new compliance challenges. In this context, professional legal support is essential for the sound development of companies in the Polish market.