zondacrypto CEO slams Poland over strict crypto bill

zondacrypto CEO criticizes Poland’s Crypto-Asset Market bill, calling it a ‘prime example of overregulation’ that could lead to the criminalization of basic crypto activities from service providers.

In a statement sent to crypto.news, zondacrypto CEO Przemysław Kral highlighted the potential pitfalls of Poland’s Crypto-Asset Market Act, which has recently been approved by the majority of Polish lawmakers from the lower house of parliament, the Sejm. The bill is now awaiting approval from lawmakers in the Senate.

The law would introduce a licensing regime for crypto asset service providers, aligning Poland’s regulations with that of the European Union’s Markets in Crypto-Assets Regulation framework or MiCA. However, the bill also enforces harsh sanctions for violations, including fines of up to 10 million Polish zlotys or around $2.8 million. Some regulations even carry a sentence of up to two years in prison.

“Poland has taken it too far and its domestic crypto industry will suffer as a result. It imposes excessive restrictions that treat crypto as a threat rather than an opportunity,” said Kral in his statement to crypto.news.

According to zondacrypto’s CEO, the new regulatory framework could end up criminalizing basic activities in the space, such as developing smart contracts. He believes the bill would make it harder for innovation to grow in the country’s emerging crypto market if it gets passed.

“Companies will relocate to friendlier markets, taking jobs and tax revenue with them,” he added.

Karl said that his firm, zondacrypto, made the decision to be regulated in in Estonia where it pays over €6 million in value added tax annually to the nation. Even though the firm itself was founded in Poland, he cited the country’s “less favorable environment” as the reason why it moved its business elsewhere.

zondacrypto‘s view on Poland’s upcoming crypto bill

Based on the official document, the bill would grant Polish financial supervising agency, Komisja Nadzoru Finansowego, authority as the main watchdog of the country’s crypto market. This means that crypto asset service providers including exchanges and issuers, would need to hold a license approved by the KNF in order to operate in Poland.

“The new rules also make it much harder for new crypto companies to launch in Poland, meaning the existing giants will continue to dominate the market,” said zondacrypto’s CEO, Przemysław Kral.

The process involves crypto firms sending through a detailed application which includes their corporate structure, capital adequacy, internal controls and compliance systems, risk management policies and Anti-Money Laundering procedures.

If the bill gets enacted, crypto asset service providers in Poland will have six months to secure the necessary license, or risk being forced to shut down and face legal penalties such as fines and jail time.

Although zondacrypto’s CEO believes that regulations are necessary for the upkeep of the crypto industry, as it is becoming more globally recognized, they argue this is overregulation.

“While regulation is necessary for consumer protection, it can be counterproductive,” Kral told crypto.news via a press agent.

The law is also receiving backlash from lawmakers who opposed the bill’s vote last week. Janusz Kowalski, a member of the Sejm opposition Law and Justice Party, slammed the government’s interpretation of the EU’s MiCA regulation calling the bill “the largest and most restrictive cryptocurrency law in the EU!”

Compared to Germany, Czech Republic, Cyprus, Hungary, and Romania, Poland’s bill is the longest.

“This shows the scale of absurdity from the team, which is blocking the development of crypto assets in Poland by wanting Poles to keep their savings outside Poland,” said Kowalski.