Polish Parliament Set to Consider Cryptoasset Draft Laws

The Polish parliament, Sejm, is preparing to review draft laws on cryptoassets, with up to five proposals on the table. The government and President Karol Nawrocki have submitted their own drafts, which differ mainly in terms of penalties for fraud and blocking accounts at the request of Poland's financial market watchdog.

The government proposal would allow the KNF to block a cryptoasset account or cash account for up to 96 hours if there is a justified suspicion of a breach of certain MiCA provisions. The presidential draft limits any extension to three months and requires prior approval from an administrative court, citing the need for added judicial control.

Regulating the crypto market has taken on renewed urgency following a recent fraud investigation into Zondacrypto, which left up to 30,000 users unable to access their funds. Confirmed losses stand at a minimum of PLN350mn ($97mn), with potential lines of inquiry including fraud, mismanagement, and theft.