Polish Financial Supervision Authority since made it clear that the trading of Bitcoin is legal in the country

By Selena On Jul 25, 2020

The Polish Financial Supervision Authority (KNF) is currently considering whether to regulate Bitcoin and other cryptocurrencies in the country. Because they are seeking to build a unified cryptocurrency regulatory framework, which governs businesses associated with cryptocurrencies. KNF is currently seeking feedback from financial institutions and other stakeholders in the crypto space.

KNF now pondering on whether to regulate Bitcoin and other cryptocurrencies in the nation

Until now, the financial regulator has yet to set clear cut rules to govern cryptocurrency market participants in the state. However, that situation may be about to change as KNF is considering whether to regulate the Polish cryptocurrency industry as other regulators and central banks are now more severe for cryptocurrency types.

Meanwhile, KNF has implemented the project “Positions of the Polish Financial Supervision Authority regarding the issuance and trading of crypto-assets” – expected to end by the end of July 2020. The project comes with a project proposal. The seminar identifies the basic concepts related to cryptocurrencies, gives hypothetical examples of cryptocurrency use cases, and how they can be classified according to Polish law.

KNF stated:

“We’re looking to formulate a legal framework that will put in place a uniform approach to the regulatory bottlenecks plaguing firms interested in offering crypto-related services including the issuance and trading of crypto assets.”

Now, KNF is asking financial institutions and other stakeholders in its cryptocurrency sector to send feedback regarding the proposed regulatory framework.

Moreover, the first Polish regulators are trying to gain control of the nation’s cryptocurrency ecosystem in 2018 by trying to impose income tax on cryptocurrency transactions. However, this move could not see the light, as Bitcoin traders in the region collaborated to oppose it.

In February 2018, a report emerged that the National Bank of Poland conducted a secret slander campaign on cryptocurrencies on YouTube and other social media platforms to prevent residents from buying Bitcoin. In July 2019, Bitmarket, Poland’s second-largest cryptocurrency exchange, suddenly closed its operations due to a lack of liquidity.

It remains to be seen whether the new legal framework will promote the development of Polish cryptocurrencies and eliminate fear, uncertainty, and suspicion from the hearts of cryptocurrency enthusiasts in the region.

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