Poland and Turkey get tough on crypto with strict new laws
Poland is stirring up a storm with a new bill that could really hit crypto companies hard, even threatening jail time for those who don’t comply. Unsurprisingly, it’s getting a lot of flak from both politicians and industry giants. Meanwhile, over in Turkey, regulators might soon get the power to freeze crypto accounts if they suspect illegal activity.
Poland’s ‘anti-innovation’ crypto bill
So, what’s happening in Poland? Well, the lower house of their parliament, called the Sejm, recently passed something known as the Crypto-Asset Market Act. It passed by a pretty close vote of 230-196, and it’s basically Poland’s version of the EU’s big crypto rulebook, MiCA. Now, it’s off to the Senate for another vote, and then it goes to President Karol Nawrocki to sign it into law.
This new law would give a lot of power to the Polish Financial Supervision Authority (KNF), making them the main watchdog for stablecoin issuers, crypto service providers (VASPs), and trading platforms. Their main goals? Keeping the market fair, stopping manipulation, and protecting investors.
To even get a license, these crypto firms would have to show they have enough money, a solid company structure, good compliance systems, and proper risk controls. Existing companies would get a six-month grace period to get licensed once the law is active. What’s more, licensed VASPs would need to prove their employees are financially savvy, implement strict ‘Know Your Customer’ (KYC) and anti-money laundering (AML) checks, and even keep client funds separate from their own. If a company fails or goes bankrupt, the KNF could even tell them to move customer assets to another platform. And if you break these new rules? We’re talking fines of up to $2.8 million or even up to two years in prison.
United against the bill
Unsurprisingly, this bill has drawn some serious heat both inside and outside of Poland. Przemysław Kral, CEO of zondacrypto – an exchange that actually started in Poland but moved to the more welcoming Estonia – didn’t mince words, calling it “a major step backwards, and a prime example of overregulation.” He pointed out that regulation, if not done right, can actually hurt an industry instead of helping it grow. Kral believes Poland has “taken it too far,” arguing that the country’s crypto sector will suffer because these rules treat crypto like a danger rather than an opportunity. He even warned that “basic activities like smart contract development” could become illegal, which would definitely stifle innovation and push companies – along with their jobs and tax revenue – to other, more crypto-friendly markets.
Local politicians who voted against the bill are also speaking out. Janusz Kowalski, a Sejm member and former Minister, slammed the framework as far too detailed and predicted it would “kill Poland’s budding digital asset industry.” He highlighted the sheer size of the Act: 118 pages long! That’s by far the longest version of MiCA in the EU; Germany’s is 78 pages, and countries like the Czech Republic, Romania, and Hungary all have versions under 15 pages. Kowalski called it “absurdity from [Prime Minister] Tusk’s team,” claiming they’re actively blocking crypto development and essentially forcing Poles to keep their crypto savings outside the country.
There might be a glimmer of hope, though. President Nawrocki could be the digital asset sector’s last chance against this new framework. A law firm in Warsaw suggests there are signs he might veto the Act and propose his own, hopefully more favorable, version.
Turkey to freeze ‘crypto’ accounts
Elsewhere, the Turkish government is also making moves. They’re getting ready to introduce a new bill that would give their financial regulator the power to freeze crypto accounts linked to illegal activities. Bloomberg reported, citing sources, that these proposed changes will hit parliament in the next few weeks.
This isn’t just a random crackdown; it’s part of Turkey’s broader effort to fight financial crimes like money laundering and to meet the recommendations of the Financial Action Task Force (FATF). In fact, Turkey was taken off the FATF’s ‘grey list’ last year, after being on it for three years due to weaknesses in its anti-money laundering standards.
The proposed changes would specifically empower Turkey’s Financial Crimes Investigation Board (MASAK) to freeze and even shut down accounts they suspect are involved in illegal activities, not just on crypto platforms, but also in banks, e-money institutions, and payment firms. Insiders suggest the bill is specifically aimed at stopping “account renting,” where criminals pay people to use their accounts to move illicit funds.
This move comes as crypto adoption has absolutely exploded in Turkey in recent years; almost one in five Turks owned digital assets last year, placing them third globally after the UAE and Singapore. Plus, a whopping 99% of Turks have heard of digital assets, a huge leap from just 16% in 2020.
