The economic management of Poland stated that it wished to explain the situation of cryptocurrency trade in Poland and has stated that it is already in practice permitted in the report.
In a public message, the KNF acknowledged the arising uncertainties about the operation of crypto trading. The performance of the crypto exchanges is not banned under the official regulation. It means that crypto-running operations in the arrangement of interactions are both permitted and, thus, lawful.
The announcement does point out that starting in 2018, associations acting as cryptocurrency exchanges or trade posts would need to follow AML and counter-terrorism funding regulations.
Additionally, as trading cryptocurrency in Poland may be connected to the organizations that operate in the financial marketplace, some KNF permissions, such as those allowing the conditions for crypto wallet services and the performance of money transfers, may be required.
Besides, it alerted cryptocurrency-related businesses, stating that for those businesses that offer assistance without the necessary authorisation, the KNF will be forced to take the necessary enforcement measures.
Blockchain network technology, on which cryptocurrencies are founded, permits the direct transfer of an infinite number of cryptoassets to an infinite number of users. They are simple to run, less susceptible to government rules, and decentralized, making them entirely reliant on their users. This area of the financial industry is still uncontrolled despite its rising popularity and financial potential. PFSA and other international and national regulatory regimes have all issued warnings regarding cryptocurrencies, emphasizing the lack of proper supervision over cryptosystems and the possibility of money launderers making use of them.
In 2020, the government introduced a new charge format to simplify the procedure for Polish citizens to declare their crypto-operations. Cryptocurrencies are not regarded as virtual money, forms of payment, or monetary units by the Polish regime. To properly announce earnings from trade in cryptocurrency in Poland, residents must conduct records. Individual and commercial earnings are taxed under the state regime. Providers of cryptocurrency exchanges are unaffected. Gains from crypto trades are taxable as earnings from cash assets.
If you have some questions about trading or a cryptocurrency exchange license in Poland, get in touch with Eli Deal’s specialists.