Poland is considering new crypto laws
The Polish Parliament is expected to consider up to five draft bills on cryptoassets on May 12. The Sejm’s preliminary agenda includes proposals from the government, President Karol Nawrocki, and members of various parliamentary groups.
The aim of the bills is to transpose the EU Regulation on Markets in Crypto-Assets (MiCA) into Polish law. The process had been delayed after Nawrocki blocked two earlier government initiatives.
Prime Minister Donald Tusk stated last week that the government would now submit its crypto bill to parliament for the third time. The new proposal differs primarily in that it imposes harsher penalties on individuals who commit fraud and expose the Polish state to risks, Tusk said.
Dispute Over Account Freezes and Penalties
The government’s and the president’s drafts differ primarily regarding the powers of the Polish Financial Supervision Authority (KNF) and the severity of potential penalties.
The government’s proposal stipulates that the KNF may issue a written order to a crypto service provider to freeze a crypto or cash account for up to 96 hours. This would require reasonable suspicion of a violation of certain MiCA rules.
In addition, the KNF could extend the suspension of a cash or crypto-asset account for up to six months or suspend individual transactions if this is necessary to protect market security or the interests of crypto investors.
The President’s draft retains the 96-hour period but limits a possible extension to three months. Furthermore, prior approval from an administrative court would be required for such an extension. The explanatory memorandum states that stronger judicial oversight is intended to ensure the legality of administrative decisions.
There are also differences regarding penalties. The Ministry of Finance’s bill proposes increasing the penalty for obstructing or preventing inspections from 20 million PLN to 25 million PLN. The President’s draft leaves it at 20 million PLN.
Investigations Increase Political Pressure
Regulation of the crypto market has taken on added urgency after the Polish prosecutor’s office launched an investigation in April into possible fraud at the crypto exchange Zondacrypto.
According to current information, the case involves up to 30,000 users who are reportedly no longer able to access their funds. Confirmed losses amount to at least 350 million PLN, equivalent to approximately 97 million U.S. dollars. The prosecutor’s office is investigating possible fraud, mismanagement, and theft.
Zondacrypto CEO Przemysław Kral is reportedly said to have traveled to Israel. His Israeli citizenship could complicate the proceedings, as Israel generally does not extradite its own citizens. Kral had previously publicly confirmed the existence of an inaccessible cold wallet in which customer funds were allegedly stored. He has not made any further public statements since then.
The exchange’s difficulties date back to 2022. That was when founder Sylwester Suszek disappeared. He is said to have taken the private keys needed to access the company’s reserves. His family suspects that Suszek was killed.
Kral denies any theft and attributes the collapse to a liquidity crisis that was exacerbated by technical problems following Suszek’s disappearance. The public prosecutor’s office has not accepted this account so far and points to suspicious transactions as well as dwindling reserves prior to the freezing of payouts.
Polish authorities are also investigating political donations and potential networks of influence that could link the interests of the crypto industry to regulatory decisions. At the same time, Donald Tusk’s government faces accusations of exploiting the proceedings for political gain. For the affected users, however, the main focus is on whether and when they will be compensated.
