In February 2018, the country’s central bank funded YouTube vloggers to carry out a smear campaign against cryptocurrencies. BitBay, the largest cryptocurrency exchange in Poland, recently announced its decision to move to Malta.
However, to clear misapprehensions in the mind of cryptocurrency investors, Polish financial regulator Komisja Nadzoru Finansowego (KNF) has stated that they are not against cryptocurrency trading, but the ban on ICOs remain. The regulator has also clarified its stance through a detailed posting on its official website.
To prevent money laundering, terrorist financing, and tax evasion, KNF plans to introduce new regulations that are suited for Bitcoin and other cryptocurrencies. According to KNF, the new regulations would classify cryptocurrencies and exchange platforms as “obligated institutions”. In other words, the Polish cryptocurrency market will have to comply with KYC, AML, and TF (terrorist funding) regulations.The new laws pertaining to cryptocurrencies will become effective from the middle of July 2018.
The KNF, however, has warned that the ban on ICOs (Initial Coin Offerings) remain. As ICOs are unregulated, scammers use deceptive tactics to swindle unsuspicious investors. Poland has also initiated a campaign to protect its citizens from losing money to scammers in the cryptocurrency space. The campaign clearly mentions the risk involved in cryptocurrency investments due to their unregulated nature. The country’s Finance ministry had earlier stipulated dual tax brackets of 18% and 30% for cryptocurrency transactions. However, it was later withdrawn after severe criticism. Currently, there are no taxes on cryptocurrency transactions.