Crypto license in Poland

First, to begin with, the most common practice in conducting entrepreneurial activity in the scope of virtual assets is the use of a legal entity. In this case, it is rational to use a company in the legal form of a limited liability company – in Poland – Sp. z o. o. Second, qualify the planned scope of services, meet the MiCA requirements, and prepare the necessary documents for licensing (e.g. business plan, comprehensive policies, risk management & mitigation procedures, AML control frameworks to detect suspicious transactions, etc.). Third, apply to the national authority and keep periodic communication regarding the application. The applicants may be asked for possible calls, responses, etc. to clarify information or submit the missing documents. As a result, the applicant shall receive a notification from the supervision authority with the final decision regarding the licensing.

Which authority regulates crypto activities in Poland?

CASP licensing will take several months, depending on each case specifically. The whole process may take up to around 4 months until the regulator provides a reasoned decision on the applicant.

Yes, cryptocurrency is legal in Poland and is described in the Polish AML Act.

According to paragraph C (26) of Article 1 of the Polish AML Act, virtual currency means a digital representation of value that is not:

• A legal tender issued by government agencies or foreign central banks.
• An international payment unit established by international organizations.
• “Electronic money” as defined in the Payment Services Act 2011.
• A financial instrument as defined in the Financial Instruments Trading Act 2005.
• A bill of exchange and a cheque.

• Incorporate a local company with a physical address that will meet CASP applicant requirements and determine the scope of planned activities before the beginning of the licensing process;
• Prepare the necessary internal documentation based on the chosen activity, meet the requirement of share capital deposit, and collect all required documents of the company’s staff.
• Apply to the national supervisory authority.
• Wait until the final decision on the application.

The following types of activities under Article 3 of MiCA can be carried out with a CASP license in Poland and across the EU:

• providing custody and administration of crypto-assets on behalf of clients;
• operation of a trading platform for crypto-assets;
• exchange of crypto-assets for funds;
• exchange of crypto-assets for other crypto-assets;
• execution of orders for crypto-assets on behalf of clients;
• placing of crypto-assets;
• reception and transmission of orders for crypto-assets on behalf of clients;
• providing advice on crypto-assets;
• providing portfolio management on crypto-assets;
• providing transfer services for crypto-assets on behalf of clients;

The penalty for not registering as CASP by the required deadline under Article 111 is 5,000,000 EUR

In accordance with Article 59(2) of MiCA, at least one of the directors shall be resident in the European Union.Therefore, non-residents of Poland can own a crypto company.

The share capital depends on the chosen class of license, whether it is:

• 50000 EUR for a Class 1 license;
• 125000 EUR for a Class 2 license or;
• 150000 EUR for a Class 3 license.

The type of license directly depends on the planned scope of services to be provided by the company.

As of today, the primary authority overseeing the crypto activities in Poland is the Polish Financial Supervision Authority (KNF). It is expected to act as the competent authority for CASP authorization and supervision under MiCA in the future, subject to Poland’s national implementing framework. Besides, the entities’ ongoing compliance with the latest AML standards is monitored by the General Inspector of Financial Information (GIIF). However, apart from the national authorities, the crypto activities in Poland are also regulated by the EU-wide MiCA framework, which fully came into force in late 2024. The new framework is designed to ensure more transparency, stronger security protocols, and a harmonized regulatory framework across the EU. 

The KNF acts as the primary supervisory authority for the Polish financial market. When it comes to crypto, its role is to authorize CASPs, confirm their compliance with the latest MiCA regulations, and ensure the companies meet the robust operational and technical requirements. Also, the authority focuses on ensuring that all CASPs registered in Poland follow the stringent Digital Operational Resilience Act (DORA) to maintain IT security in the market. 

Yes, Poland is a highly attractive business jurisdiction due to its advantageous taxation regime, clear regulations, and a high concentration of skilled IT professionals. Starting in late 2024, the Polish crypto ecosystem has been transitioning from the former VASP registration to the new CASP authorization under the European MiCA framework. This shift aims to elevate the Polish compliance standards even further, so that the locally registered CASPs operate within a harmonized and consistent framework and seamlessly expand across all EU member states. 

According to the new MiCA regulation that has been implemented in all EU member states, the licensed CASPs can perform the range of activities permitted under their type of licensing. Namely, there are three categories of crypto services available to the European businesses:

1. Class 1:
   1. Execution of orders;
   2. Placement of crypto-assets;
   3. Transfer services for crypto-assets on behalf of clients;
   4. Reception and transmission of orders;
   5. Advice on crypto-assets;
   6. Portfolio management on crypto-assets;
2. Class 2:
   1. Services permitted in Class 1;
   2. Exchange of crypto-assets for funds;
   3. Exchange of crypto-assets for other crypto-assets;
3. Class 3:
   1. All services permitted in Classes 1 and 2;
   2. Operations of a trading platform for crypto-assets.

As an EU member state, Poland applies the standard MiCA requirements to the CASP license applicants. Here is the overview of the core legal obligations that must be fulfilled before sending your application to the KNF for revision: 

• Company incorporation in Poland;
• A physical office in the jurisdiction;
• Compliance with the AML and CFT protocols;
• Appointment of the Money Laundering Reporting Officer (MLRO) who must be based in the European Union;
• Fulfilment of the minimum share capital obligations:
  • Class 1: €50,000;
  • Class 2: €125,000;
  • Class 3: €150,000.
• Complete and accurate documentation:
  • A detailed business continuity plan;
  • Internal control policy to ensure full compliance with MiCA standards;
  • Conflict of interest prevention policy to promote transparent and fair decision-making;
  • Custodial services, storage, and administration policy for CASP classes 2 and 3;
  • Client complaints handling policy;
  • An ICT security policy to safeguard IT systems and ensure the integrity of customer data and crypto transactions.

Preparing the complete and accurate documentation is critical when it comes to successful CASP authorization in Poland. Even if a minor error occurs in your paperwork, this might cause unexpected delays in your application revision. That’s why it’s highly recommended to cooperate with a team of expert consultants who will help you proceed with your entire licensng journey smoothly and efficiently. As of today, the list of documents required for obtaining the crypto license under MiCA may include the following: 

• Resumes of all directors and beneficiaries;
• Documents regarding relations with subsidiaries;
• Compliance documentation;
• Anti-Money Laundering (AML) and Know Your Customer (KYC) policies;
• Company’s governance structure description; 
• Documents related to IT systems and security measures;
• Business continuity plan;
• Conflict of interest prevention policy;
• Internal control policy;
• Pricing policy;
• Client crypto-asset protection;
• AML policy;
• Fund segregation;
• Outsourcing management;
• Insurance policy;
• ICT security;
• Custodial services, storage, and administration (only for Class 2 and 3 CASPs);
• Client complaints handling.

Keep in mind that this list is not exhaustive and the KNF may request additional information at the revision stage of your authorization. In this case, it’s crucial to respond to the supervisor’s inquiries efficiently and proactively to ensure your licensing process goes without delays. 

Yes, the local presence requirements for CASPs imply that the crypto company must have a physical office registered in Poland. Since the MiCA regulation came into force, virtual offices are not permitted for CASP applicants anymore. Besides, the presence of a local or EU-resident director is a mandatory legal requirement for crypto companies in Poland and across all EU member states.  

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The final CASP licensing cost in Poland consists of two major parts:

1. First-year fees:
   1. Company incorporation;
   2. Assistance with your CASP application;
   3. Initial compliance documentation;
2. Ongoing license maintenance: 
   1. Annual license renewal;
   2. Mandatory annual audits;
   3. Compliance reporting;
   4. Local presence costs, including the expenses related to the office rent and AML officer.

Please keep in mind that you can learn about the exact amount of the total costs from our consultants. We’ll introduce you to each element of your license’s final price in accordance with your business model, compliance needs, and scope of service your company provides. While planning your license budget is indeed an essential part of CASP authorization, it can easily become overwhelming if you handle it alone. Our experienced consultants are ready to walk you through the entire licensing process, including your license budgeting, from the initial compliance assessment to the application submission and bank account opening.

Here is the breakdown of the taxes applicable to the Polish CASPs:

• Corporate income tax (CIT): the standard rate is 19%, while the CIT for new and smaller companies is 9%, if the relevant statutory conditions are met;
• VAT: cryptocurrency exchange transactions may generally be VAT-exempt;
• Capital gains tax: the standard rate is 19%. 

The standard tax rate for crypto gains is 19%. This amount is calculated from the positive difference between the sale price and the purchase price of the assets. 

As one of the most crypto-friendly EU member states, Poland allows a wide spectrum of crypto activities, from retail exchanges to custody providers and trading platforms. However, the range of permitted services is determined by one of the three classes of your CASP authorization. 

Yes, the Class 2 and 3 CASP licenses authorize your company to perform crypto exchange and brokerage. To qualify for these types of services, you must meet a minimum share capital requirement of your selected license category:

1. Class 1: €50,000
   1. Execution of orders;
   2. Placement of crypto-assets;
   3. Transfer services for crypto-assets on behalf of clients;
   4. Reception and transmission of orders;
   5. Advice on crypto-assets;
   6. Portfolio management on crypto-assets;
2. Class 2: €125,000
   1. Services permitted in Class 1;
   2. Exchange of crypto-assets for funds;
   3. Exchange of crypto-assets for other crypto-assets;
3. Class 3: €150,000
   1. All services permitted in Classes 1 and 2;
   2. Operations of a trading platform for crypto-assets.

Absolutely, Poland is one of the most cost-friendly yet reputable jurisdictions in the EU. The country’s strong position in today’s crypto economy is mainly linked to Poland’s low tax threshold for startups, strategic location, clear and consistent MiCA regulation, and a vast pool of developers in the industry. 

Yes, and it is one of the key benefits offered by licensing under the MiCA regulation. Once your company is authorized as a CASP by the KNF, it can provide services across all EU member states under a single license. These “passporting” rights, in turn, significantly simplify the entry path to the vast European market and a large consumer base. 

Yes, MiCA applies directly in Poland as an EU regulation, but Poland has not yet adopted a national implementing act for the domestic CASP authorization framework. This new EU-wide framework comes with a shift from the former VASP registration to the new CASP authorization. With a transition period until July 1, 2026, the existing and new crypto companies must comply with the MiCA requirements and submit their applications for the CASP licenses in order to remain operational in the EU after the transitional period.