2024-03-13 06:32:06
Poland’s crypto regulator Komisja Nadzoru Finansowego (KNF) can now block access to cryptocurrency for individuals and businesses for up to 96 hours.
Even stricter regulations than the EU MiCA regulation are being introduced for our northern friends. The agency that regulates crypto activities will now have the ability to freeze crypto assets stored on centralized platforms. The new regulations were introduced following several crypto companies moved to the country ahead of the entry into force of EU regulations on Markets in Crypto Assets (MiCA).
Unlimited crypto power in the hands of Poland’s KNF?
KNF has now been authorized to block the accounts of crypto users for up to 96 hours if there is a suspicion of a crime related to funds, tax expert Izabela Deryło said. Moreover, with the permission of the public prosecutor’s office, the accounts in question can be frozen for up to 6 months.
“In case of suspicious activity, if a transaction can be linked to a crime, the KNF will have the opportunity to block the accounts of cryptocurrency owners under its own authority” – Derylo said.
Polish crypto investors reacted negatively to the new regulation. According to some, the KNF can thus gain unlimited power over crypto-assets.
KNF’s headquarters are in Warsaw, at Piękna 20. Source: Wikimedia Commons.
The Polish government and KNF said the rules are also in line with the EU MiCA regulation. Although MiCA requires crypto-exchanges to report all money movements, regardless of the size of the transactions, it does not use the sanction of blocking accounts.
A year ago, it was the cryptogate of the EU
Before the introduction of MiCA, Poland tried to provide a friendly environment for crypto companies. In September 2023, it granted operating licenses to 13 new crypto exchanges, while the number of crypto businesses operating in the country is at least 951.
Establishing a company dealing with cryptocurrencies is relatively cheap for Poles. The registration cost is approximately 164 dollars, or HUF 60,000. Of course, stock exchanges may face additional costs depending on their business. Because of the cheap options, many companies used Poland as a gateway to their EU operations. Due to the introduction of even stricter regulations than MiCA, it looks like this trend may change.
According to a survey conducted by Statista in 2023, 74% of Polish respondents own or use cryptocurrencies. Since then, this ratio may have changed due to market trends, changes in the regulatory environment, and public sentiment regarding cryptocurrencies. It will be an interesting observation to see what proportion of crypto owners will switch to non-custodial solutions for storing their cryptocurrencies following the introduction of the rules.
Published on the BitcoinBázis page.
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