Cryptocurrency license in Poland: what you need to know
The legal status of cryptocurrencies in Poland is regulated by the AML/CFT law adopted in 2018. It aims to combat the financing of terrorism and money laundering. In addition, several important updates have recently emerged, stating that cryptocurrency can be considered a means of payment. Companies that want to provide crypto exchange services must obtain a crypto license in Poland.
What does the AML/CFT law specify
The AML/CFT law classifies cryptocurrency as property. This means that it is subject to the same rules as money placed into deposit accounts. Cryptocurrencies are recognized as financial resources that can be exchanged for other means of payment.
Poland, like many other countries, does not consider cryptocurrency equal to fiat or electronic money but views them from the perspective of ownership. This means that digital money is not legal means of payment, a financial instrument, an account, or a check. Nevertheless, individuals and legal entities can accept cryptocurrency as a medium of exchange, as well as transfer, store and sell it electronically.
Peculiarities of cryptocurrency exchanges in Poland
There are no provisions in the Polish legal system that prohibit opening cryptocurrency exchanges or engaging in cryptocurrency exchanges. But it should be emphasized that since 2018, all cryptobusinesses and companies that engage in crypto exchanges must obtain a license. To do so, they must meet several requirements, including:
- designate an employee responsible for transparency to make sure that no money is laundered through the company, etc;
- prepare an internal risk assessment or update it if necessary;
- implement an internal AML/CFT procedure;
- undergo training that will allow them to do their job well;
- report crypto transactions to the regulator;
- identify the clients if the amount of a single crypto transaction exceeds €1,000.
It is important to remember that failure to comply with these requirements can be punished by a fine and even an order to terminate cryptocurrency activities.
Importance of cryptolicense
All crypto exchanges and companies that engage in cryptocurrency exchanges must obtain a permit. The company conducting virtual currency exchange transactions without prior registration would violate the Payment Services Act, which is punishable by a fine of 100,000 zlotys.
The following categories are allowed to work with virtual currencies:
- Natural persons. No criminal fraud convictions, money laundering, forgery of documents, etc. It is a mandatory requirement.
- Legal persons. Owners, beneficiaries of the company, as well as persons who are in management positions must pass a criminal background check.
To prevent the theft of funds from a cryptocurrency wallet, special attention should be paid to security. Otherwise, cryptocurrency license in Poland 2022 will not be given. It is also important to note that people who are engaged in cryptocurrency activities must have the appropriate qualifications.
How to get a cryptolicense
The entry in the register of activities in the field of virtual currencies is made based on the electronically submitted application. It must contain:
- Company name (last name, first name of the individual).
- Number in the register of entrepreneurs in the National Court Register (if assigned).
- Service specification you provide in the field of cryptocurrencies.
Additionally, you must attach the entrepreneur's declaration - it is a special statement specified in the provisions of the AML/CFT law. It must state that you undertake to comply with the statutory requirements under penalty of criminal liability for filing a deliberately false declaration.
There is a stamp duty of 616 PLN to be added to the registry. The application is reviewed within 2 weeks, and if everything is in order, the regulator issues a cryptolicense.
How to get a cryptolicense fast in Poland
If you are interested in cryptocurrency activities in Poland, contact IT-OFFSHORE experts.