MiCA was published on 9th June 2023 and is aimed at the protection of investors
and the establishing of a transparent crypto -assets market , enhancing the safeguards
for holders of crypto-assets, financial stability and the integrity of crypto -assets
markets. MiCA regulates, among other things, the public offering, issuing and
permitting of crypto- assets for trade.
The EU Regulation 2023/14 will take effect directly with some exceptions on 30th
December 2024 in Poland and other EU member states. As of 30th June 2024
regulations of MiCA will apply to asset reference and e-money tokens. It is expected
that the transition period of MiCA will last until 1st July 2026 and during the transition
period crypto asset service providers will still be entitled to offer their services on an
unregulated market, however, these services will still be subject to provisions of
counteracting money laundering, financing terrorism and to scrutiny of the Polish
Financial Supervision Authority (“KNF”). Pursuant to Article 143 of MiCA, Poland and
other EU member states can introduce transitional measures allowing entities already
operating in the crypto – currency market to adapt and tailor their businesses to the
requirements of MiCA. However, caution shouldl be taken as member states may
shorten the transition period and/or make the transition period applicable to certain
kinds of crypto – currency. In Poland the transition period may be shortened by 12
months for some kinds of crypto – assets and this issue is now under discussion.
MiCA defines precisely, among other things, the following:
crypto – assets meaning a digital representation of a value or of a right that is able to
be transferred and stored electronically using distributed ledger or similar technology;
asset-referenced token’ meaning a type of crypto-asset that is not an electronic
money token and that purports to maintain a stable value by referencing another value
or right or a combination thereof, including one or more official currencies;
electronic money token’ or ‘e-money token’ meaning a type of crypto-asset that
purports to maintain a stable value by referencing the value of one official currency.
In accordance with MiCA the so – called “Crypto Service Provider” status can be
granted to entities that (1) have not been regulated and supervised so far (e.g. cryptocurrency
stock exchanges) after obtaining the appropriate license and (2) some
traditional financial institutions (e.g. banks) after notifying their intention to provide
crypto – currency services.
As MiCA will directly apply any further legal acts at national level in this area will be
rather limited. In many European Countries, including Poland, so called “Regulatory
Technical Standards” implementing MiCA into national systems will be prepared. In
Poland a new bill of the Act on Crypto-Assets (“ACA ”) is currently being read and
contemplated in the Polish Parliament. It is expected that ACA will be introduced by
the end of this year at the latest.
The main regulations covered by the ACA are as follows:
● Appointing KNF as the body responsible for supervising the execution of MiCA
in Poland
● Imposing new obligations on issuers of crypto assets including obligations to
submit information to KNF about their business activities,
● Enhancing powers of KNF with regards to penalties and other financial
measures that can be imposed on issuers of crypto assets,
● Imposing criminal liability for supervised entities and their directors for
violation of legal provisions of MiCA and acts related to crypto assets,
● Possibility of addressing crypto asset services including public offerings in an
electronic way.
To ensure a timely and orderly transition of MiCA in Poland, we propose that entities
already engaged in crypto – currency services should make adequate preparations as
soon as possible to. reduce the risk of disruptive business model adjustments. These
preparations should involve early dialogue between these entities and KNF to inform
KNF of their transition plans. This should include especially:
informing KNF and clients of their transition plans as early as possible
informing clients about the regulatory status of the crypto assets and /or services
they are offering in Poland
clarifying the regulatory status of their products and/or services they are offering
to avoid confusion with regulated offerings in the light of MiCA and ACA
provisions
applying for MiCA authorization as soon as possible and without this
authorization they will not benefit from passporting within the EU during the
transition period and
engaging with KNF on questions concerning MiCA, its scope and the application
of the framework to current activities.
It should also be stressed that entities providing crypto – assets services who are active
in more than one member state under local applicable law must continue complying
with all applicable laws until the end of the transitional period.
Naturally we will be pleased to support you during the implementation of MiCA and
ACA regulations in Poland and transitional phases.
