Foreign EU companies gain edge as Poland struggles with cryptocurrency licensing delays

Poland’s failure to pass implementing legislation for the EU’s crypto regulation has created a licensing vacuum where foreign-authorized firms can operate domestically while Polish companies cannot. The deadlock leaves domestic operators at a structural disadvantage as competitors from other EU member states leverage cross-border MiCA provisions to access the Polish market.

• The Sejm fell short on September 4 with 241 votes to override the presidential veto, needing 276 for passage.
• Poland’s previous virtual-currency register ceased providing authorization on July 1 when the MiCA transition period expired.
• EU-authorized firms can operate cross-border in Poland after notifying their home regulator, while Polish applicants remain blocked.

• 241 Votes cast to override presidential veto, 35 short of required threshold
• July 1 Date when Poland’s previous crypto register ceased conferring legal authorization
• 2+ months Duration Poland has operated without a designated MiCA licensing authority

Poland’s crypto licensing regime remains suspended after lawmakers failed to overturn President Karol Nawrocki’s June 11 veto of implementing legislation on September 4. The Sejm recorded 241 votes in favor of re-enactment against 198 opposed and three abstentions, falling 35 votes short of the supermajority threshold needed to advance. The defeated bill would have established the domestic authority required to process MiCA applications under the European Union’s Markets in Crypto-Assets Regulation. With that authority still undesignated, Poland has maintained a de facto licensing freeze for more than two months after its transition period under the bloc-wide standard expired.

The Markets in Crypto-Assets Regulation became binding across the EU on December 29, 2023, with a six-month transition period allowing existing operators to continue under legacy rules. That arrangement was intended to give member states time to establish the regulatory infrastructure required by MiCA. Poland’s earlier virtual-currency register operated under a notification-based system that differed from MiCA’s more stringent authorization framework, creating a gap between the old regime’s sunset and the new one’s activation.

Polish operators locked out while foreign competitors gain entry

The licensing deadlock has created an asymmetry that favors non-Polish firms. Domestic crypto service providers cannot initiate authorization proceedings because the Polish Financial Supervision Authority has stated that such applications cannot begin until law formally designates a competent authority. Companies relying on Poland’s previous virtual-currency activity register, which functioned before MiCA’s July 1 implementation deadline, lost legal standing to operate on that date.

The Katowice Tax Administration Chamber confirmed that entries on the old register no longer confer authorization. Polish regulators have stated that neither domestic legislation nor administrative action can extend the transition period beyond July 1, effectively closing the previous operating route before establishing its replacement.

This situation reflects a broader challenge facing regulators during MiCA implementation. The regulation imposes harmonized requirements across the EU, yet national implementation depends on individual member states completing legislative and administrative steps. Where those steps encounter political obstacles, as in Poland’s case, a gap emerges between MiCA’s effective date and the availability of a functioning national authorization process.

Cross-Border MiCA Authorization offers alternative path for foreign firms

EU regulations permit crypto-asset service providers authorized in any member state to operate across the bloc through their home regulator. Under MiCA’s cross-border provisions, a firm can notify its regulator of the countries and services it intends to serve and begin activity either immediately or after any applicable waiting period expires. Polish regulators have confirmed this route remains open for foreign-authorized operators seeking access to Polish customers.

This mechanism creates a clear incentive structure. Companies unwilling to wait for Poland to establish its MiCA licensing framework can apply for authorization in another member state where the regulatory machinery is already operational, then serve Polish customers through the cross-border channel. Member states including France, Spain, and the Netherlands have processed MiCA applications since the regulation took effect, offering an immediate alternative to Polish applicants.

A Polish-owned crypto firm could theoretically maintain market access by establishing an affiliate in another EU jurisdiction, obtaining MiCA authorization there, and completing the cross-border notification process. However, this approach requires establishing a legal entity abroad and managing regulatory compliance in multiple jurisdictions. A company relying solely on its previous Polish registration cannot follow that path and faces effective market exclusion until domestic legislation advances.

The competitive disadvantage extends beyond market access. Foreign-authorized operators can market services to Polish consumers while domestic competitors cannot, potentially allowing them to establish customer relationships and brand presence before Polish firms gain authorization. This temporal advantage compounds the structural barrier created by the licensing freeze.

Passage of competent authority legislation remains the critical next step

Polish lawmakers must pass legislation that formally designates the competent authority responsible for processing MiCA applications before the domestic licensing regime can resume operation. The competent authority would typically sit within an existing financial regulator rather than requiring creation of an entirely new institution.

The September 4 vote represented the second legislative attempt to advance MiCA implementation following the June veto. The supermajority requirement means that even significant support from the governing coalition proved insufficient without additional opposition votes switching sides. No timeline has been announced for a new legislative push or a potential negotiated resolution of the presidential veto.

Political dynamics surrounding the veto remain unclear. Presidential opposition to specific legislative language could reflect substantive policy concerns about regulatory design, budgetary allocations, or the designated authority’s placement within government. Alternatively, it might reflect broader political disagreement between the presidency and parliament. Without public explanation of the veto rationale, opportunities for compromise remain difficult to identify.

Until lawmakers pass the required enabling legislation and the competent authority begins accepting applications, Polish crypto firms seeking to serve domestic customers without a foreign license face operating suspension. The distinction mirrors the situation in other member states during MiCA’s transition period, but Poland’s extended deadlock has made the competitive advantage of cross-border authorization unusually pronounced.

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