Poland has passed a new crypto law that has already triggered strong criticism from industry participants, with concerns that it could undermine the country’s competitiveness in digital assets.
The legislation, which is framed as an interpretation of the European Union’s Markets in Crypto-Assets (MiCA) framework, introduces stricter domestic measures that some argue go well beyond EU requirements.
While Polish officials describe the rules as necessary for consumer protection and financial stability, critics say the approach risks stifling innovation and pushing companies abroad.
Zondacrypto CEO: “A Step Backwards”
Przemysław Kral, CEO of European crypto exchange zondacrypto, said the legislation marks a retreat from the balanced framework laid out by MiCA.
“While the EU’s MiCA provides a clear and balanced rulebook for crypto, Poland’s interpretation of it is a major step backwards, and a prime example of overregulation,” Kral said. “While regulation is necessary for consumer protection, it can be counterproductive. Poland has taken it too far, and its domestic crypto industry will suffer as a result.”
According to Kral, the new rules impose excessive restrictions that treat crypto as a threat rather than an opportunity. He warned that they could even criminalize basic activities, such as smart contract development, which would discourage talent and investment in the country.
Risk of Industry Flight
The exchange executive argued the regulations could accelerate the relocation of crypto businesses to other jurisdictions. “Companies will relocate to friendlier markets, taking jobs and tax revenue with them,” Kral said.
He cited Zondacrypto’s own experience: Despite being founded in Poland, the company is regulated in Estonia, where it pays more than €6 million in VAT annually. “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,” he added.
Balancing Oversight and Technological Development
Poland’s move comes at a time when EU member states are preparing to implement MiCA, a landmark regulation designed to harmonize crypto rules across the bloc. Supporters argue that stronger oversight will help protect consumers and reduce risks tied to money laundering and fraud.
However, industry leaders like Kral say Poland’s stricter approach risks undermining MiCA’s original intent—creating a level playing field that allows responsible innovation to thrive.
The controversy shows a broader challenge for regulators worldwide: how to strike the right balance between safeguarding markets and encouraging growth in an industry that continues to evolve at speed.
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