MiCA Regulation in Poland
Markets in Crypto-Assets (MiCA) is a new regulation introduced by the European Commission to establish a unified regulatory framework for the crypto-asset market across Europe. The act primarily targets the cryptocurrency and virtual asset sectors, aiming to regulate market participants, protect investors, combat market manipulation, money laundering, and fraud, and further promote innovation, integrity, and growth in the crypto market—all while ensuring market security.
The MiCA regulation will come into effect on January 1, 2025. This date marks a significant shift in the regulatory landscape for crypto-assets across Europe, including Poland. Under MiCA, all entities currently operating under Virtual Asset Service Provider (VASP) licenses must transition to the new Crypto-Asset Service Provider (CASP) licensing framework.
The MiCA introduces a comprehensive framework to regulate crypto-asset activities across the European Union. However, to accommodate existing VASP, it provides a transition period for these entities to adapt to the new standards and secure the necessary CASP license.
Under Poland’s draft Act on the Crypto-Assets Market, VASPs registered in the Polish VASP Register by December 30, 2024, can continue operations under existing anti-money laundering (AML) regulations until June 30, 2025. However, to operate beyond this date, VASPs must obtain a CASP license as stipulated by MiCA.
Eligibility:
Polish companies listed in the Polish VASP Register by December 30, 2024, are entitled to continue their operations under existing AML laws until the deadline.
Audit Process:
Regulators may initiate audits to assess the readiness and compliance of VASPs transitioning to MiCA standards. During this period:
- Entities are notified of audits in advance, with a mandatory waiting period of 7–30 days before the audit begins.
- The notice typically outlines the audit’s focus, such as verifying the qualifications of management board members or compliance with AML obligations.
- Management board members must provide proof of qualifications, such as training certificates or documentation of at least one year of experience in virtual currency activities. A clean criminal record certificate is also required for compliance with Polish AML regulations.
- Entities that refuse to accept audit notices may face removal from the VASP register.
- Early preparation, including documentation of compliance, is essential.
Regulatory Oversight:
- During the transition, Polish VASPs will remain under the supervision of the General Inspector of Financial Information (GIIF).
- Existing AML obligations will continue to apply.
Important to note:
Provisions of the draft Polish Act on the Crypto Assets Market are still under public consultation, and changes may occur.
It is unclear how applications submitted after December 30, 2024, but before June 30, 2025, will be treated.
To successfully transition from a VASP to a CASP, entities must develop a robust compliance framework that meets MiCA’s requirements. Below are key considerations (please note: specific application conditions are subject to the finalization of Poland’s Crypto-Asset Market Act and may be subject to change):
1. Capital Requirements
MiCA mandates specific capital thresholds depending on the services offered:
- EUR 50,000 for advisory services and order execution.
- EUR 125,000 for custody services or crypto-fiat exchange.
- EUR 150,000 for operating a trading platform.
CASPs must maintain a capital buffer equivalent to one-quarter of the previous year’s fixed overheads.
2. Cash Account Obligations
CASPs must segregate client funds from their operational assets by maintaining separate cash accounts at recognized credit institutions or central banks.
3. Documentation Requirements
The European Securities and Markets Authority (ESMA) has outlined detailed guidelines for documentation in its Regulatory Technical Standards (RTS). These documents include:
- Programme of Operations: A detailed description of services offered, operational jurisdictions, marketing strategies, and financial forecasts.
- Governance Policies: Internal control mechanisms, organizational hierarchy, and roles of compliance personnel.
- Business Continuity Plan: Strategies to ensure service continuity during crises.
- AML Documentation: Policies to address money laundering and terrorism financing risks.
- Client Asset Segregation Policy: Processes to protect client assets and funds.
- Complaints-Handling Procedures: Systems to manage client complaints efficiently.
- Early Planning: VASPs should start preparations immediately, given the comprehensive nature of MiCA compliance. Develop a clear roadmap with specific milestones.
- Audit Readiness: Conduct internal audits to identify gaps and ensure documentation is ready for regulatory reviews.
- Leverage Expertise: Engage legal and compliance professionals with experience in MiCA and Polish regulations to navigate complex requirements.
- Tailored Documentation: Customize compliance documents to reflect the unique operations and structure of your business.
Switzerland
Renowned for its strong reputation and offering the most comprehensive functionality for crypto services.
Canada
A cost-effective license to conduct both payment and crypto activities, making it attractive for new market entrants.
El Salvador
A pioneering country in the adoption of Bitcoin as legal tender, fostering crypto-friendly opportunities.
Poland
Known for a relatively easier licensing process.
Solvenia
A stable jurisdiction with a longer transitional regulatory period (from VASP to CASP) until July 2026.
Czech Republic
A growing hub for fintech innovation.
1. What is the MiCA regulation?
MiCA (Markets in Crypto-Assets) is a regulation introduced by the European Union to establish a unified regulatory framework for the crypto-assets market across Europe. It aims to regulate market participants, protect investors, combat money laundering and market manipulation, and foster innovation and growth while ensuring market security.
2. When does MiCA come into effect?
MiCA will officially take effect on January 1, 2025, introducing significant changes to the regulatory landscape for crypto-assets in Poland and throughout Europe.
3. What impact does MiCA have on VASPs in Poland?
Under MiCA, all existing Virtual Asset Service Providers (VASPs) must transition to the new Crypto-Asset Service Provider (CASP) licensing framework, as the current VASP licenses will no longer be valid.
4. What is the transition period for MiCA in Poland?
During the transition period, entities registered in Poland’s VASP register by December 30, 2024, can continue operating under current Anti-Money Laundering (AML) regulations until June 30, 2025. After that date, VASPs must obtain a CASP license to continue their operations.
5. What happens if a VASP does not obtain a CASP license on time?
If a VASP fails to secure a CASP license by the end of the transition period, it will no longer be allowed to operate legally and risks being removed from the VASP register.
6. How will audits be conducted during the transition period?
Regulators will notify VASPs of upcoming audits in advance, with a preparation period of 7 to 30 days. Audits typically assess management qualifications and compliance with AML obligations. Entities refusing audit notifications risk removal from the VASP register.
7. What documents must VASPs provide during audits?
VASPs must submit proof of management qualifications, such as training certificates or documentation of at least one year of experience in virtual currency activities, and a clean criminal record certificate to comply with Polish AML regulations.
8. What are the capital requirements for CASPs?
MiCA specifies different capital thresholds based on services offered:
- EUR 50,000 for advisory services and order execution.
- EUR 125,000 for custody or crypto-to-fiat exchange services.
- EUR 150,000 for operating trading platforms.
CASPs must also maintain a capital buffer equal to one-quarter of the previous year’s fixed overheads.
9. What compliance requirements must CASPs meet?
CASPs are required to maintain segregated client funds in independent accounts, separate from operational assets. They must also provide detailed operational plans, governance policies, AML documentation, client asset segregation policies, and a complaints-handling procedure.
10. How can a VASP prepare for a CASP license application?
To transition successfully, VASPs should:
- Begin preparations early by developing a clear compliance roadmap.
- Conduct internal audits to identify compliance gaps and ensure documentation is in order.
- Seek legal and compliance expertise with experience in MiCA and Polish regulations.
- Customize compliance documentation to align with their business operations and structure.
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