Polish financial regulators are scuttling the gossips around the possible strict measurements against the cryptocurrencies. According to the information from the main financial regulator in Poland Komisja Nadzoru Finansowego (KNF), virtual currency traders have no reasons to worry.
KNF assures Polish investors that there is no limitation for the virtual currency trading. The regulator’s website even states that trading the digital currencies in the country is legal. However, Poland is serious about regulating the market to prevent money laundering, tax evasion and financing terrorism.
As a matter of fact, KNF plans to introduce the new regulatory laws for Bitcoin and other altcoins. These laws will come into force in the middle of July 2018. They classify cryptocurrencies and exchanging platforms as “mandatory institutions.” This way, Polish cryptocurrency market, according to the new laws, will fall under the legislation on money laundering and terrorist financing prevention (ML/TF).
However, KNF claims that the ban on the cryptocurrency initial coin offering (ICO) remains unchanged.
ICO is the mechanism of fundraising, used by the virtual currencies and blockchain startups to gather money for their projects in exchange for the digital currency tokens. ICOs are contradictory due to their unregulated nature and widely spread fraudulence.
Poland activates its efforts to inform the citizens about the dangers of the cryptocurrency market. Its campaign is focused on the absence of strong regulatory norms in this sphere, and therefore, people should be cautious while investing in cryptocurrency assets.
Ministry of Finance has announced the update of the contradictory laws on cryptocurrency taxation. In the earlier decrees, the taxes between 18% and 30% were presupposed for the cryptocurrency transactions. However, after the sharp condemnation and online protests, the Ministry backed down, stating that there would be no taxes for transactions.
As for the anti-cryptocurrency rhetorics, the Polish government has a history of negative sentiments. In February 2018, the Central Bank of the country financed the anti-cryptocurrency campaign. It paid several YouTube bloggers for creating videos on cryptocurrencies with the negative connotation.
Recently, the country’s biggest cryptocurrency exchange BitBay has announced the termination of its activity in Poland and moving to Malta. The platform accused Polish banks of not supporting its business, so the management decided on moving to the more friendly climate.