What is the scope of activity for a crypto business in Poland?

A crypto company can provide activities in the field of virtual currencies. These include:
 

• Exchange of virtual and fiat currencies
• Swapping between virtual currencies
• Acting as an intermediary (broker or agent) in the above activities
• Supporting digital accounts of customers (eWallet). Companies cannot store fiat currencies in a digital wallet.

In Poland, the regulation of cryptocurrency exchanges falls under the purview of the Polish Financial Supervision Authority (PFSA). According to the PFSA, cryptocurrency exchanges operating in Poland are required to obtain a license in order to legally provide their services.

To obtain a license, cryptocurrency exchanges must meet certain requirements, including:

1. Having a registered office in Poland
2. Having a board of at least three members who are fit and proper to perform their duties
3. Having sufficient financial resources and technical capabilities to provide the services they offer
4. Having policies and procedures in place to prevent money laundering and terrorist financing
5. Providing the PFSA with all relevant information and documents as required

Cryptocurrency exchanges in Poland must also adhere to certain ongoing obligations, such as maintaining accurate and up-to-date records and reporting any suspicious activity to the PFSA.

It’s worth noting that the regulation of cryptocurrency exchanges is a rapidly evolving area, and the requirements for obtaining and maintaining a license may change over time. It’s important for exchanges to stay up to date on the latest developments in this area.
 

Crypto regulations in Poland

Polish Financial Supervision Authority (KNF) has declared that “In the Polish system, there are no regulations prohibiting the conduct of an activity as an exchange or an exchange office for cryptocurrencies, which means that conducting activities in the form of an exchange in cryptocurrencies, as well as trading in cryptocurrencies, is not prohibited and is therefore legal.”

The regulations introduced in 2021 state that conducting business activity in digital currencies includes exchanging virtual currencies and fiat currencies or other virtual currencies, setting up markets for such exchanges, and setting up digital accounts where customers can store virtual currency.

In Polish law, ‘virtual currency’ is defined as a token that can be stored or transferred electronically, traded for legal tender, accepted as a medium of exchange, or tendered in e-commerce. It can also not be a representation of a currency that is legal tender, issued by the National Bank of Poland or by any foreign central bank or other recognized public bodies such as the euro, which is accepted by countries belonging to the European Union. The definition of virtual currency also differentiates it from electronic money, financial instruments, checks and bills of exchange.
 

How to set up a Polish Cryptocurrency business

In the following sections, we will outline the basic steps you will need to take to establish yourself in this market.
 

Corporate requirements in Poland

The primary corporate requirement is that the Crypto Banking claim must be held by a company registered in Poland itself, not a fellow member of the EU. However, ownership of the company is not restricted to Polish citizens, or even to citizens of other EU or EEA countries.

There are two options:

• Acquire a company that is currently registered in Poland and that meets the requirements of registration as a cryptocurrency exchange.
• Create a new legal entity in Poland by following these steps:

• Preparation of Articles of Association and Memorandum of Agreement
• Preparation of AML/CFT (Anti-Money Laundering Law) and KYC forms
• Opening a corporate bank account with a recognized financial institution, EMI or bank within the EEA
• Submission of proof of identity of the company representative (e.g., a certified copy of the director’s passport – translated under the apostille into Polish if the representative is not a Polish citizen.)
• Proof of residence of the company (local business office with zip code)
• Submitting information about company officials (Directors, Ultimate Beneficial Owners, Shareholders)
• Application to Polish Tax Service for approval and obtaining a Polish tax number (PESEL)

 
GBO can provide guidance and assistance in performing all of these steps. Talk to us before you start so that you do not miss out on any required steps.

Since Poland is within the European Economic Area, the bank account for a  crypto company in Poland can be opened at any registered EU payment institution. This does not require a physical visit and can be done remotely.
 

Licensing a Polish cryptocurrency company

There is no formal licensing authority. The only necessary step is registering the company in the Register of Organizations as authorized to trade in cryptocurrency. This requires payment of the required government fees and production of the AML procedure in Polish.
 

FAQ

Can a Polish crypto business support fiat-to-crypto and crypto-to-fiat exchange

There are currently no restrictions on the type of activity as long as the company adheres to the AML and KYC regulations. Individual transactions are not subject to supervision.

Storing and investing fiat currency on behalf of customers is considered as investment activity and is not permitted without a separate license.
 

Can a Polish crypto company trade in ordinary currencies?

Under current regulations, a Polish company requires a payments license to store clients’ ordinary (fiat) balances. It can only engage in crypto/fiat and fiat/crypto exchange transactions. Fiat currency payments cannot be handled through the company’s bank account, since this payment service has to be separately licensed.
 

Is activity in cryptocurrencies legal in the European Union?

According to the judgment of the Court of Justice of the European Union on October 22, 2015 (C-264/14),  activity in the field of virtual currencies is generally legal in the EU. Individual member countries can set their own rules and regulations but must conform to the minimum level of control that was stipulated in that judgment.
 

What is the rate of corporate profit tax in Poland?

For any taxpayer whose sales in tax year did not exceed the złoty equivalent of two million euro (classified as a small tax payer), and for new companies in the first year of trading, the Corporate Income tax (CIT) rate in Poland is nine percent. For all other companies, the rate is nineteen percent