Poland’s parliament has passed a long-awaited bill to regulate the domestic crypto market, but it has yet to be signed by President Karol Nawrocki. XTB, one of the country’s largest digital brokers, has urged the president to ratify the law promptly, citing an 11-month delay in implementing new rules.

XTB Calls for Swift Action

The legislation aims to align Poland with the EU’s MiCA framework, providing clarity and legal certainty for crypto firms. In an open letter, XTB warned that without ratification:

• Local investors are exposed to regulatory risks.
• Polish companies cannot compete with foreign platforms.
• Tax revenues may be lost as residents use offshore exchanges.

“Without a local law, Polish investment firms cannot obtain necessary licenses,” the letter stated.

Industry Criticism of the Bill

Despite XTB’s push, the bill has faced criticism for its complexity and heavy-handed provisions:

• The legislation runs 334 pages, with over 1,200 pages of implementing acts—far longer than EU counterparts.
• Poland’s Financial Supervision Authority (KNF) gains broad powers, including blacklisting crypto companies and influencing bank accounts.
• A 0.4% gross revenue tax is seen as punitive, and there is no fast-track registration for brokerages.

Opposition leader Sławomir Mentzen described the bill as “the most unfriendly in Europe,” warning it could drive startups and crypto jobs abroad. He advocates for a MiCA-aligned approach with minimal additional layers and an independent crypto regulator.

Balancing Protection and Growth

Poland faces a delicate balance: protecting investors while fostering a competitive, homegrown crypto sector. XTB emphasizes that the absence of legislation poses a greater risk than imperfections in the bill, noting that foreign firms already offer crypto trading to Polish residents.

The Polish Economic Institute has highlighted the urgency, reporting that 1 in 5 crypto investors has been a victim of fraud. Ratifying the law could provide both consumer protection and a path for domestic industry growth.

As President Nawrocki considers his decision, Poland’s crypto sector sits at a pivotal moment: either opening the door to EU-aligned growth or imposing hurdles that may push innovation offshore.