Poland Left Behind as EU Crypto Regulation Takes Hold

Poland remains the only European Union country without a functioning domestic licensing regime for crypto firms, leaving around 2,000 local companies in regulatory limbo. The MiCA regulation, which comes into full effect on July 1, requires crypto companies to obtain licenses from national authorities, but Poland's President Karol Nawrocki has refused to sign legislation granting the country's Financial Supervision Authority (KNF) the power to issue licenses.

Nawrocki argues that the law gives regulators excessive powers and favors banks and large corporations over startups. He also claims that parts of the law go beyond the MiCA regulation itself, allowing for measures such as freezing customer funds for months and blocking websites without exhausting legal appeals.

As a result, Polish crypto firms are being forced to seek licenses abroad or risk shutting down. Only a small number of companies have secured MiCA licenses in other EU countries, raising concerns that many smaller firms will either close, relocate, or seek authorization abroad.