Poland’s Financial Watchdog Mulls Crypto Regulation
Polish Financial Supervision Authority (KNF), is now pondering on whether to regulate bitcoin (BTC) and other cryptocurrencies in the nation. The regulator is looking to formulae a uniform crypto regulatory framework that will govern crypto-linked businesses and is now seeking feedback from financial institutions and other stakeholders in ts cryptospace, according to reports on July 24, 2020.
Polish Regulator Considers Bitcoin
While the Polish Financial Supervision Authority (KNF) has since made it clear that the trading of bitcoin and other cryptocurrencies is legal in the country, the financial watchdog is yet to put in place clear cut rules to govern crypto market participants in the state.
However, that situation may be about to change soon as the KNF is considering whether to regulate Poland’s crypto industry as other regulators and central banks are now taking digital currencies more seriously.
Per sources close to the matter, the KNF has rolled out a project dubbed (translated) “Positions of the Polish Financial Supervision Authority regarding the issuance and trading of cryptoassets.”
The project, which is scheduled to come to conclusion by the end of July 2020, comes with a draft document that defines the basic concepts as regards cryptocurrencies and it outlines hypothetical examples of crypto use cases and how they could be classified under Polish law.
KNF Asking for Feedback
Importantly, the KNF has made it clear that it’s looking to formulate a legal framework that will put in place a “uniform approach to the regulatory bottlenecks plaguing firms interested in offering crypto-related services including the issuance and trading of cryptoassets.”
Now, the KNF is asking financial institutions and other stakeholders in its cryptospace to send feedback concerning the proposed legal framework.
It’s worth noting that Polish regulators first tried to gain control of the nation’s crypto ecosystem in 2018 by trying to impose income taxes on crypto transactions. However, the move could not see the light of day, as bitcoin traders in the region orchestrated serious protests against it.
In February 2018, reports emerged that the National Bank of Poland had carried out a secret crypto slander campaign on YouTube and other social media platforms to discourage residents from buying bitcoin (BTC).
As reported by BTCManager in July 2019, Bitmarket, Poland’s second-largest cryptocurrency exchange suddenly shuttered operations citing lack of liquidity.
It remains to be seen whether the new regulatory framework will promote the growth of the Polish cryptospace and eliminate fear, uncertainty, and doubt from the hearts of crypto enthusiasts in the region.