Poland is considering a strict cryptocurrency bill.

Polish parliamentarians have approved a bill regulating the cryptoasset market, introducing restrictions and creating a special supervisory body.

Bill 1424, which has not yet passed its third reading in the Sejm, introduces a licensing regime for cryptoasset service providers and brings Polish legislation into line with the European Union’s regulatory framework for cryptoasset markets.

The document provides for criminal liability for violations, including fines of up to 10 million Polish zlotys ($2,8 million) and imprisonment for up to two years.

According to the law, the Financial Supervision Commission will become the primary regulator of the crypto-asset market, and both domestic and foreign exchanges, crypto-asset issuers, and developers of custodial solutions will be required to obtain a license to operate in Poland.

In applying for a licence, organisations will be required to describe their corporate structure, internal control systems, risk management policies and anti-money laundering procedures, and confirm capital provision.

If the bill is passed, the maximum period for obtaining a license will be limited to six months. Failure to comply with the requirements within the deadline will result in termination of operations and legal consequences.

This initiative was negatively received in the Polish crypto community. In particular, Polish politician and blockchain advocate Tomasz Mentzen noted that their local regulator is «the slowest regulator in the EU, with an average application review time of 30 months.»

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