Poland’s progressive approach to cryptocurrency has attracted some of the world’s largest cryptocurrency exchanges, which have either moved to the country or opened new branches there. Poland sought to create a legal framework for innovative technologies that rests on three pillars: consumer protection, market integrity and financial stability. This comprehensive legal framework was the first in the world and was eagerly awaited by financial technology professionals, operators and investors.
The legal framework specifically developed by the Government of Poland to regulate virtual financial assets and services related to virtual financial assets, including cryptocurrency exchange transactions, is based on three acts of digital innovation management, Establishing the Digital Innovation Authority of Poland. The Technology Innovation Organization and Services Act, which provides for registration of technology service providers and certification of technology agreements; and the Act on Virtual Financial Assets, which mainly regulates the initial placement of ICO coins. No person may provide services unless he has obtained a license from the Polish Financial Supervisory Authority prior to conducting business transactions.
Among the main requirements for filing and obtaining a Poland crypto license are the following, if the applicant is an individual, a physical presence is required. Where the applicant is a legal person, it may be established in Poland or, subject to its establishment in official foreign jurisdiction, it must open an office in Poland.
No restrictions on the nationality of the applicant’s ultimate beneficial owners. Authorized persons, directors, management, significant shareholders and ultimate beneficial owners must pass the conformity and suitability test.
The applicant must conduct a financial instrument test to ensure that the asset for which the applicant will provide a service falls within the value of the virtual financial instrument under. The Board of Administrators/Directors should be managed effectively by at least two persons. The applicant must also appoint a supervisor, an anti-money laundering inspector and a risk manager.
If the licensee’s business model includes the custody of investors’ assets and funds, you must appoint a custodian to securely store virtual financial assets. Any FIAT currency must be held by an authorized bank / credit organization. The licensee must ensure a combination of cold and hot storage. Appropriate insurance would also be required to mitigate the risks associated with hot storage.