Nawrocki responds to the government’s third act on cryptocurrencies. “Reaching Out”

The Ministry of Finance has prepared the third version of the act on the cryptocurrency market. The previous two projects were vetoed by President Karol Nawrocki. However, the new version does not withdraw from the hard course towards the cryptocurrency market. Shortly after the publication of the draft government bill, a conference was convened by the Chancellery of the President, which announced its draft bill on cryptocurrencies.

After the government’s third bill, the president submits his bill on cryptocurrencies

As Zbigniew Bogucki, head of the KPRP, informed, the presidential project is like “extending a hand” to the government.

— The president is in favor of wise, reasonable regulation of this market in line with the Constitution (…) However, it is also a solution to the government, especially in which Prime Minister Tusk wants to go completely to the wall, saying that this is the last chance. Maybe he should take advantage of this opportunity presented by the president. This project is, in fact, based, to a large extent, on the government project and this is the outstretched hand of the president – Bogucki said at a press conference.

As the head of the KPRP emphasized, the project prepared by the president is intended to protect consumers and investors. According to him, the new regulations are intended to guarantee effective supervision of state institutions over the crypto-assets market and increase the security of cryptocurrency market participants.

Bogucki, however, assessed that with appropriate cooperation from the government, the act could have been adopted earlier. — If there had been a willingness to cooperate on the part of the ruling coalition, this matter would have been resolved long ago. Unfortunately, this determination was lacking, although perhaps now the government will change its approach, said the politician.

The third act on cryptocurrencies. What does the government’s project contain?

The biggest change in the project is much higher financial and criminal sanctions. The government wants to hit harder at entities operating without permits and people publishing false information about cryptoassets.

Providing services related to cryptoassets without the required authorizations will no longer result in a fine of PLN 5 million, but even of PLN 20 million. The maximum prison sentence will increase from five to eight years.

Sanctions for false data in information documents are also to be higher. BIP reports that the project provides for a fine of up to PLN 10 million and eight years of imprisonment.

The third act on the crypto market. The Polish Financial Supervision Authority will receive even greater powers

The project also maintains the very strong position of the Polish Financial Supervision Authority. The Polish Financial Supervision Authority is to become the main authority supervising the crypto-asset market in Poland.

The office will be able to, among others: suspend token offers, prohibit the provision of cryptocurrency-related services or impose high administrative fines. The maximum period of prohibition on trading in cryptoassets is to be extended from 12 to 24 months. The project also provides for the possibility of carrying out inspections and requesting documents and explanations from entities operating on the market.

Why Nawrocki vetoed previous bills on cryptocurrencies

President Karol Nawrocki previously argued that the government’s projects went beyond the requirements of the EU MiCA regulation and led to overregulation of the market. The reservations concerned, among others: high supervisory fees and broad powers of the Polish Financial Supervision Authority, including the possibility of blocking internet domains or accounts.

The EU’s MiCA regulation is already in force, but Member States must adapt their national rules to it. BIP reminds that if Poland does not do this by June 30, it may face sanctions from the EU.

Finance Minister Andrzej Domański argues that the new regulations are primarily intended to protect Poles’ savings and organize the cryptocurrency market.