Web3 Companies Entering the Polish Market: Opportunities and Challenges

With the implementation of the EU's Market in Crypto-Assets Regulation (MiCA), an increasing number of Web3 companies are turning their attention to the European market. Among them, Poland, as a highly promising emerging market, is attracting a lot of attention. This article will delve into the current state of the Polish Web3 market, the regulatory environment, and future development prospects.

Overview of the Polish Web3 Market

The economic potential is enormous

Poland, as the sixth largest economy in the European Union, occupies an important position in the Central and Eastern European region. Although its fintech ecosystem started relatively late, it is showing strong development momentum. As the largest financial services market in the region, Poland is attracting a large number of talents and investments.

A Preferred Place for Web3 Enterprises

As of 2024, Poland has over 1,100 active registered virtual asset service providers (VASPs) and 126 Web 3.0 startups. This data fully reflects the thriving development of Poland's Web3 industry.

has a large potential user base

Poland has a population of about 38.26 million, ranking fifth in the EU. Although the proportion of people who have a deep understanding of cryptocurrencies is only 6.2% at present, over 94% of the population has heard of cryptocurrencies, which means there is still a huge space for market penetration.

Poland Web3 Regulatory Framework

main regulatory authorities

The Polish Financial Supervision Authority (KNF) is the country's main financial regulatory body, responsible for overseeing various financial activities, including Web3. The regulatory goals of the KNF are to ensure the stability, security, and transparency of the financial markets, and to protect the interests of market participants.

Regulatory Policy Changes

With the implementation of MiCA, Poland is advancing domestic legislation to align with it. The draft "Polish Cryptocurrency Market Act" was published in December 2024, which significantly shortens the transition period stipulated by MiCA:

• Existing VASP entities must apply for a CASP license by June 30, 2025.
• The VASP registration system will be completely abolished on October 1, 2025.

Compliance Requirements and Penalties

After obtaining the CASP license, enterprises must strictly comply with the MiCA regulation and local regulatory requirements in Poland, including risk assessment, anti-money laundering measures, etc. Violations may face administrative penalties such as public warnings, business suspension, and hefty fines. Serious violations may also lead to criminal liability for management personnel.

Poland's Cryptocurrency Tax Policy

Poland's taxation policy on crypto assets is relatively mature. Main features include:

• Cryptocurrency trading income is regarded as capital income.
• The tax rate is unified at 19%, with no specific threshold.
• Not only is tax required for exchanging fiat currency, but tax is also required for exchanging goods, services, or property.
• The exchange between cryptocurrencies does not create a tax liability.

Taxpayers must accurately declare cryptocurrency income and fulfill their tax obligations, while retaining relevant transaction records for review.

Conclusion

Poland, as an emerging Web3 market, is both full of opportunities and facing challenges. On one hand, its large potential user base and active entrepreneurial environment provide ample development space for Web3 businesses. On the other hand, with the implementation of the MiCA legislation and the improvement of the local regulatory framework, companies will also face stricter compliance requirements.

For Web3 companies intending to enter the Polish market, it is crucial to have a deep understanding of local laws and regulations, establish a sound compliance system, and develop reasonable tax strategies. In this process, seeking assistance from professional legal and financial advisors will help companies better seize opportunities, avoid risks, and achieve significant development in the Polish Web3 market.