What happened?
Poland passed a new crypto law that goes beyond the EU’s MiCA framework and has sparked strong criticism from the industry. The rules introduce licensing, fines up to 10 million PLN and even potential prison terms, and critics warn they could criminalize routine activities like smart contract development. Officials say the aim is consumer protection and financial stability, but many in crypto call it overregulation that will hurt the domestic market.
Who does this affect?
Crypto firms and startups are hit first — exchanges, wallet providers, DeFi projects and developers will face tougher licensing and higher compliance costs. Polish investors and consumers could end up with fewer choices, higher fees and slower access to new products as companies rethink their presence. Workers, tax revenues and the broader fintech ecosystem risk being lost if businesses relocate to friendlier jurisdictions like Estonia.
Why does this matter?
Market-wise, the law increases the chance of regulatory arbitrage and industry flight, concentrating activity in other EU hubs and weakening Poland’s competitiveness. For markets and users, expect higher compliance costs, reduced liquidity and slower product launches in Poland, which can push up fees and widen spreads. While tougher rules might boost trust for some users over time, the near-term impact is likely less innovation, fewer local startups and negative effects on jobs and tax income.