According to the Polish Financial Supervision Authority (KNF), trading in cryptocurrencies and cryptocurrency exchanges are not prohibited by law. As Polish regulator KNF says crypto trading is not illegal, the new circular of KNF has emphasized the new regulations for Bitcoin and other cryptos.
7 June, AtoZ Markets – It usually happens that when a regulator announces it will look into a cryptocurrency market, market participants start speculating on possible strict regulations of crypto. However, the latest announcement from the Polish regulator KNF is aimed to say the opposite.
Polish Regulator KNF Says Crypto Trading is Not Illegal
As of the moment, the legal system of Poland does not include any regulations that would ban the activity of crypto exchanges. According to the Polish Financial Supervision Authority (KNF), trading in cryptocurrencies and cryptocurrency exchanges are not prohibited by law and thus, crypto transactions are “legal on the territory of the Republic of Poland.”
However, Poland has attempted to regulate specific aspects of cryptocurrencies. Some of the cases have appeared more concerning than others. Yet, none of the instances involved Polish regulator banning a particular crypto asset class. The country has, however, moved to adopt a position similar to other countries to regulate the cryptocurrency sector, aiming to prevent its use for criminal activities.
The circular of KNF has also emphasized the new regulations for Bitcoin and other cryptos that address the anti-money laundering and counter-terrorism concerns. The new act in Poland that is about to become effective as of July 13, outlines the entities that are subject to this regulation. The firms are referred to as “obligated institutions”.
ICOs are Banned in Poland
Following on this, the list of the “obligated institutions” is quite extensive. However, it does not necessarily refer to cryptocurrencies. It appears that Bitcoin exchanges and some other entities that offer the trade of cryptos can be regarded as obligated institutions.
It is also known that Polish ban on the initial coin offerings (ICOs) stays in place. Officials in Poland have launched a campaign to educate its citizens about the potential risks that are linked to the cryptocurrency and margin trading.
The campaign highlights the lack of the appropriate regulations, which also implies that cryptocurrencies are somewhat risky for investors. Earlier last month, Polish Finance Ministry has updated its tax code. The authority has added that it will not tax income from transactions on cryptocurrencies.
Think we missed something? Let us know in the comments section below.