Poland’s Crypto Crackdown Could Force Startups Abroad

Entry Barriers That Could Wipe Out Startups

The most criticized aspect of the bill is the high cost of entry for crypto firms. Professor Krzysztof Piech, a leading Polish economist, warned that obtaining a CASP (Crypto Asset Service Provider) license could cost startups over half a million złoty upfront, not to mention monthly compliance costs between 30,000 and 40,000 złoty.

MiCA Arrives in Poland — But With a Twist

Poland is finally moving forward with long-awaited crypto regulation, but the country’s local crypto industry is raising alarms. A draft bill prepared by the Ministry of Finance — designed to implement the EU’s Markets in Crypto-Assets (MiCA) regulation — was approved by the Polish government. But instead of clarity, it might bring a chilling effect on the ecosystem.

The bill contains extra provisions added by Polish lawmakers that go beyond MiCA’s requirements, making the regulatory environment more hostile than helpful. One of the key shifts is the assignment of regulatory oversight to Poland’s Financial Supervision Authority (KNF), a body many in the industry already view as unfriendly to crypto innovation.

The new powers would allow KNF to impose strict reporting mandates, demand in-depth disclosures from platforms, and fine crypto businesses up to 22 million złoty per year (over $6 million) — a figure notably higher than the penalties banks face.

These burdensome requirements are likely to drive local startups out of Poland, with most expected to register in more crypto-friendly jurisdictions, leaving the Polish ecosystem hollow.

Political Blowback — and a Presidential Veto Looms

Public pushback is growing. President-elect Karol Nawrocki, set to take office in August, has already announced his opposition to the law. During his campaign, Nawrocki described the proposed regulations as “murderous”, promising to veto the bill if it passes Parliament in its current form.

Despite the outcry, the Sejm and Senate are likely to adopt the draft. If Nawrocki follows through on his veto pledge, the bill will likely return to the negotiation table — but the regulatory tug-of-war is far from over.

Foreign Firms May Benefit — at Poland’s Expense

The new bill could unintentionally reward foreign exchanges. A previously discussed proposal would charge Polish exchanges a 0.5% fee on revenue, while foreign platforms would only pay a one-time $5,000 fee. Critics argue this creates an uneven playing field, incentivizing companies to operate from abroad and ultimately costing the Polish state valuable tax revenue.

The FinTech Poland Foundation added that the bill gives the KNF excessive supervisory power, and that the reporting obligations go far beyond what's considered reasonable under MiCA.

Innovation or Exile?

While the government claims the regulation will attract big players and align Poland with broader EU standards, the crypto community sees a starkly different picture. The bill may open doors for well-funded firms, but it could also choke off grassroots innovation and push homegrown companies abroad — hurting both Poland’s tech sector and its economic potential.

The battle over crypto regulation in Poland has only just begun, but for now, the message from the community is clear: if the current bill passes, the future of Polish crypto may lie outside of Poland’s borders.