Cryptocurrency Regulation in Poland
With the rising popularity of virtual currencies, the physical signs of which are Bitcoin ATMs, Poland has become the jurisdiction where crypto businesses (mining, sales, and purchase of crypto assets) are regulated and supervised by the national authorities.
The Polish financial market is generally supervised by the Polish Financial Supervision Authority which is responsible for ensuring effective functioning and development of the market as well as participates in the preparations of the draft legal acts created for the purpose of the financial market supervision.
Cryptocurrency businesses are now a separately regulated area, administered by the Tax Administration Chamber who keeps a register of crypto activities, titled the Register of Virtual Currencies.
Crypto companies operating in Poland are supported by the following initiatives:
- The Blockchain and New Technologies Chamber of Commerce representing the interests of the industry under the applicable Polish law.
- The Innovation Hub where the supervisory authority consults the Fintech companies as well as provides virtual sandboxes to support the development of new Fintech startups.
Anti-Money Laundering and Counter-Terrorist Financing Law
The main legal act combating money laundering and terrorist financing in the Polish crytpcurrency and other financial markets is the Act of March 1, 2018 on Counteracting Money Laundering and Financing of Terrorism, also known as the Polish AML Act. It’s one of the first pieces of Polish legislation defining the AML-specific term of “virtual currencies” and their regulation in the country. It stipulates fundamental AML principles for virtual currency institutions carrying out the following activities:
Virtual currencies exchange
Exchange of virtual currencies for fiat money
Cryptocurrency brokerage
Account provision and maintenance services for virtual currencies (crypto wallets)
The General Inspector of Financial Information is at the forefront of the Polish anti-money laundering and counter-terrorist financing system. The aim is to increase transparency and protect from suspicious transactions.
Virtual currency companies are obligated to implement the following procedures:
- Transparent designation of the company’s management responsible for carrying out responsibilities laid out in the Polish AML Act
- Implementation of internal AML processes designed for combating money laundering and terrorist financing
- Integration of KYC processes created for customer identification and verification as well as for assessing potential client-related risks
- Reporting to the General Inspector of Financial Information
- Designing and running training programmes for the company’s staff responsible for executing AML procedures
Poland cryptocurrency regulation
Competition and Consumer Protection
Under Polish law, specific rules for cryptocurrency consumer protection haven’t been established yet. However, the Consumer Rights Act of 30 May 2014 regulates economic activities of businesses that conclude contracts with consumers regardless of the means of transactions, which makes it applicable to the virtual currencies. Like all market participants, cryptocurrency-using businesses must comply with the Consumer Rights Act when concluding a contract with consumers, the example of which is respecting the right to withdraw from the contract in the cases stipulated in the Consumer Rights Act.
As long as virtual currencies don’t qualify as e-money, which is considered a payment service, their circulation isn’t subject to the Payment Services Act.
In Poland, there is no specific competition regulation for cryptocurrencies, although the provisions of the Act on the Protection of Competition and Consumers of 16 February 2007 generally apply. It tackles the following tasks:
- Regulation of promoting and protecting competition
- Protecting the interests of entrepreneurs and consumers in the public interest
- Preventing anticompetitive practices
- Preventing practices that infringe collective consumer interests
- Preventing the application of wrongful provisions of model forms of contracts
- Preventing anticompetitive concentrations and combination of entrepreneurs
Advantages
Fast project implementation time
Possibility to purchase an off-the-shelf solution
No share capital requirement
No obligatory local staff member
New Crypto Regulations in the EU
Cryptocurrency regulation is advancing in the EU, which Poland is part of. Therefore, in addition to Polish law, it’s imperative to monitor the quickly evolving European legal framework being constructed to regulate cryptocurrency businesses operating in or from the EU.
For instance, the European Commission is currently working on new KYC requirements for crypto businesses, which will restrict virtual currency businesses from transacting with unhosted wallets without verifying their owners’ identities beforehand. The Commission has proposed removing the current threshold of 1,000 EUR, which means that in the near future, all crypto transfers will be subject to KYC procedures.
The Register of Virtual Currencies
A company planning to engage in cryptocurrency-related economic activities in Poland is legally required to register with the Register of Virtual Currencies, maintained by the Tax Administration Chamber.
Enterprises carrying on the following activities are compelled to enter the Register:
- Exchange of virtual currencies for fiat money
- Exchange of virtual currency for another
- Accounts provisioning and maintenance of virtual currencies – wallets
- Intermediation in Virtual Currencies Exchange
These activities also determine the type of license a virtual currencies company should apply for. A company is permitted to obtain either one or all the applicable licences.
The Register is part of amended KYC procedures. Any company that fails to register prior to the launch of their crypto activities, may be fined the sum of 100,000 PLN (approx. 21,646 EUR). Before going through the mandatory crypto-authorisation procedure, crypto businesses must make sure that they comply with particular legal requirements.
Requirements for the Virtual Currencies Company
Establishing a company for a cryptocurrency business in Poland is identical to establishing a company for any other business. The most popular type of crypto company in Poland is a Limited Liability Company (Sp z.o.o), which can be established by one or more shareholders who are all allowed to be foreign non-residents of Poland and who aren’t required to hire a local director. Depending on the provision of required documentation and institutional procedures, it may take several weeks to open a new company in Poland.
Key steps of opening a new Limited Liability Company in Poland:
- Having a unique company name prepared for the registry
- Drawing up a power of attorney in case of remote registration
- Getting a notarised photocopy of the passport of the director/founder of the company with an apostille attached to it
- Preparing the Deed of Formation (the founding documents for an Limited Liability Company must be prepared and signed in front of a Polish notary)
- Registering local office premises is a prerequisite (the lease agreement will suffice to prove it), a virtual office might be an option too
- Opening a corporate bank account in Poland
- Transferring the authorised capital to the new account, the minimum of which is 5,000 PLN (approx. 1,084 EUR), which is subject to a 0,5% Civil Transaction Tax
- Obtaining a REGON (statistical) number
- Obtaining a NIP (tax identification) number
- Applying for a VAT number
- Submitting an application to register the company with the National Court Register (KRS); it will require such information as REGON number, NIP number and the application for the company’s registration with the Social Insurance Institution (the registration fee – 500 PLN (approx. 108 EUR), the consideration may take up to 7 days)
- Appointing a Management Board of the company
Moreover, prior to registering with the Register of Virtual Currencies it’s imperative to demonstrate that the crypto company has designed a transparent and reliable framework of operations.
Requirements specific to a virtual currencies company:
- A business plan must include documentation about hardware and software used for crypto business operations.
- Internal processes for meeting AML/KYC standards and ensuring risk control must be established.
- Hiring an AML officer who has to be neither a Polish citizen nor a resident of Poland.
- Having relevant professional experience is a prerequisite.
It’s important to note that all of these documents must be submitted in Polish, which means that non-Polish speakers and non-Polish document owners will need the services of a sworn translator.
Many obligations related to running a company in Poland can be done online. If the company directors are foreign citizens without a Polish personal identification number (PESEL), they can request one if they wish to obtain a Trusted Profile allowing electronic signing of applications, which will enable them to use online services for businesses.
Company directors and founders must meet the following requirements:
No criminal records – the law enforcement authorities should issue a certificate proving that the directors and founders were never convicted of criminal or tax offenses against public institutions and local government, the administration of justice, the credibility of documents, property, economic turnover, and property interests in civil law transactions, money and securities trading, or any offense committed for material or personal gain or an intentional fiscal offense.
Proven professional and/or academic financial experience—The directors and founders must demonstrate that they have at least one year of experience in the virtual currencies business; if this condition can’t be met, they must attend a course covering legal and practical issues related to virtual currencies businesses.
Registration Process for the Register of Virtual Currencies
Prior to starting to operate in Poland, every crypto company must go through the crypto-authorisation procedure for registering with the Register of Virtual Currencies.
Applications may only be submitted electronically via the Electronic Platform of Public Administration Services (ePUAP). It must be consistent with the facts and contain all the required documentation. If all the conditions are met, the Tax Administration Chamber will enter the company into the Register of Virtual Currencies within 14 days from the date of receipt of the application. In case of errors, it’s permitted to apply for the correction of the application but it may delay the process of consideration.
The Polish regulator hasn’t confirmed any periodic fees for the supervision of virtual currencies companies in Poland.
The main stages of the application process:
- Acceptance of the application for entry into the Register
- Verification of the application
- Entry into the Register or issuance of a decision refusing to make an entry into the Register
Key steps of the applicant journey:
- Preparing a declaration of compliance with the conditions required by law to conduct activities in the field of virtual currencies
- Preparing a declaration of no criminal record
- Filling out the ePUAP application form
- Paying the stamp duty in the amount of 616 PLN (approx. 133 EUR) at the time of submitting the application (the payment confirmation must be attached to the application form)
- Payments are made to the bank account of the Katowice City Hall: PKO BP SA no. 52 1020 2313 2672 0211 1111 1111 (with an annotation “fee for entry in the register of activities in the field of virtual currencies”)
- An applicant can opt to request a virtual certificate of an entry into the Register of Virtual Currencies which can be issued within 7 days from the date of obtaining the entry. However, it must be paid for at the time of submitting the application; the stamp duty is 17 PLN (approx. 4 EUR).
It’s not possible to appeal the decision to refuse to make an entry into the Register of Virtual Currencies, but it’s allowed to submit a new application for reconsideration. The application is submitted to the Director of the Tax Administration Chamber in Katowice either electronically via the ePUAP platform or by sending it by post to the following address: ul. Paderewskiego 32b, 40-282 Katowice.
Reporting Requirements
All types of companies established in Poland are obligated to comply with the annual reporting and auditing requirements. Annual financial statements and annual income tax declarations must be submitted to the e-Tax Office. Moreover, cryptocurrency companies are obligated to submit AML reports to the General Inspector of Financial Information. VAT reporting is submitted either monthly or quarterly.
A certified audit, on the other hand, is required only if a Limited Liability Company meets at least two of the following conditions: annual net revenue exceeds 5 mill. EUR, annual turnover exceeds 2,5 mill. EUR, annual employment is 50 or more full-time employees.
Crypto regulation in Poland
Period for consideration |
up to 1 month | Annual fee for supervision | No |
State fee for application |
133 € | Local staff member | No |
Required share capital | 1,077 € | Physical office | No |
Corporate income tax | 15% | Accounting audit | No |
Taxation of Virtual Currencies Companies
There is no crypto-specific tax, however cryptocurrency companies operating in Poland, depending on their legal structure, are subject to paying a variety of already existing taxes which in certain cases might be spared, considering that Poland has agreements on the avoidance of double taxation with more than 80 countries.
The most common taxes applicable to a Limited Liability Company in Poland include Corporate Income Tax, Personal Income Tax, VAT, Stamp Duty, Real Estate Tax and Excise Duty. Also, just like any other employer, a virtual currencies company, if employing individuals, is obligated to pay Social Insurance and Health Insurance contributions to the Polish government.
Standard tax rates in Poland
Tax Type | Rate | Notes |
---|---|---|
Corporate Income Tax | 19% | 9% if annual revenue ≤ 2 million EUR |
Personal Income Tax | 17% – 32% | Depends on taxable income band |
VAT | 23% | |
Dividends Withholding Tax | 19% |
When it comes to paying Corporate Income Tax in Poland, the following aspects are worth noting:
- Revenues from the exchange of virtual currency for legal tender, goods, services or property rights other than the virtual currency, or from the payment of other liabilities with the virtual currency, shall be considered revenues from capital gains.
- The value of virtual currency obtained in exchange for other virtual currency isn’t considered as revenue.
- As in the case of revenues, expenses incurred in relation to the exchange of virtual currency for another virtual currency will not be considered as revenue earning costs.
- Income from the transfer of virtual currencies is the difference gained in a given tax year between the total revenues earned from the transfer of virtual currencies against consideration and the revenue earning costs.
- To avail of the preferential tax rate or tax exemption under a relevant double tax agreement, the location of the taxpayer’s seat for tax purposes must be documented by a certificate of residence obtained from the taxpayer.
- At the end of the tax year which coincides with the calendar year, the taxpayer must indicate in the tax statement the income earned in that tax year from the transfer of virtual currencies and calculate the income tax due.
Key aspect to note when registering as a VAT taxpayer:
- According to EU law, the provision of services involving the exchange of cryptocurrencies into traditional currencies and the exchange of traditional currencies into cryptocurrencies is VAT exempt.
- Other products and services are subject to VAT
Suspending Virtual Currencies Activities
In the case of suspension of activities in the field of virtual currencies, a company can apply for the removal from the Register Virtual Currencies. The application isn’t subject to stamp duty. Information about the deletion from Register Virtual Currencies will be visible in the Register within 14 days from when the decision in this matter becomes final.
It’s mandatory to report on the suspension of virtual currency activities. The notification of the suspension of activities in the field of virtual currencies must be made by submitting an electronic form via ePuap. It should be submitted within 14 days from the activity’s suspension date. In the notification, a company should indicate the date of the suspension of activities, which may not be earlier than the date of entry into the registry and cannot be a date from the future.
The authorities responsible for the maintenance of the Register Virtual Currencies can remove a company from the Register on the following occasions:
- After obtaining information on the removal of the company from the Central Register and Information on Economic Activity or from the National Court Register
- If a company fails to meet the conditions required by law to perform virtual currencies activities
- If a company becomes incompatible with the actual state of affairs
Poland
Capital |
Population |
Currency |
GDP |
Warsaw | 38,036,118 | PLN | $19,023 |
Crypto Regulation in Poland 2024
In spite of the popularity of cryptocurrencies and consequent regulatory issues, Poland remains a relatively relaxed jurisdiction for cryptocurrency businesses as crypto-specific regulatory developments are slowly emerging at the national level, mostly due to the EU regulatory framework that applies across the member states.
New EU Rules Applicable to Poland
The year is 2024, and MiCA (Markets in Crypto-Assets) is fully in effect. This means Crypto Asset Service Providers (CASPs) across Europe, including Poland, are now following the newly established rules.
Here is the scoop:
Market Abuse Prevention: The tightened rules are clamping down on market manipulation, insider trading, and illegal disclosure of insider information. Now, CASPs must navigate these waters with extra caution.
Environmental Responsibilities: Significant CASPs must disclose their energy consumption on their websites and share this data with national authorities. This is part of the effort to reduce carbon footprint.
Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT): MiCA is aligned with existing AML/CFT directives. The European Banking Authority (EBA) will keep a keen eye on non-compliant CASPs and maintain a public register to enhance checks.
Stablecoins: CASP stablecoin issuers must hold liquid reserves at a 1:1 ratio. This ensures that all stablecoin holders can claim their coins at any time, for free. The supervision of these stablecoins will be under the watchful eye of the EBA.
DeFi and NFTs: Interestingly, MiCA is not touching decentralised finance (DeFi) and non-fungible tokens (NFTs) just yet. They remain outside the regulatory framework for now.
What’s Next?: Keep an eye out for regulatory technical standards from the European Securities and Markets Authority (ESMA), expected soon, which will further refine these rules.
So, by the end of 2024, these regulations are making waves in the Polish crypto scene and beyond. The rules might be challenging, but they are there to ensure a more stable, transparent, and environmentally conscious crypto market.
Regulatory Sandbox and Support
Regulatory Sandbox: The EU launched this sandbox in March 2023. It’s a legal framework for trading and settling transactions in cryptoassets classified as financial instruments under MiFID 2. Think of it as a safe playground for trying new tech and gathering evidence for a potential permanent setup. Scheduled for a review in 2026, it’s a space where innovation meets regulation.
ESMA’s Guidelines: The European Securities and Markets Authority (ESMA) is busy consulting on draft guidelines. Their goal is to create standard formats and templates for DLT applications and assisting with implementation through Q&As.
National Support for Polish Crypto Companies:
- KNF’s Innovation Hub – the Polish supervisory authority offers consultations and virtual sandboxes to support fintech companies in developing new technologies.
- The Blockchain and New Technologies Chamber of Commerce -this organization represents the industry’s interests under Polish law.
So, crypto innovation is thriving under careful watch and supportive frameworks, making 2024 a dynamic year for digital assets in Poland and the EU.
Cryptocurrency Licence in Poland in 2024
Poland still has not introduced a comprehensive crypto licensing process with specific licensing and supervision fees. Instead, the Tax Administration Chamber continues to issue Polish crypto authorisations, effectively serving as cryptocurrency licences.
Crypto Authorisation Requirements: If you are venturing into the Polish crypto market, you need to be listed in the Register of Virtual Currencies, which aligns with AML/KYC procedures.
Services Provided by Authorised Crypto Businesses:
- Exchange of fiat currencies and cryptocurrencies.
- Exchange of different cryptocurrencies.
- Crypto exchange brokerage.
- Provision and maintenance of cryptocurrency wallets.
Application Process: Applications for crypto authorisation can be submitted online via the Electronic Platform of Public Administration Services (ePUAP). They need to be accurate and complete to avoid delays. If your application is error-free and there’s no reason for rejection, authorisation is typically granted within 14 days of submission.
Establish a Polish Cryptocurrency Company in 2024
Steps to Open a Sp. z o. o. in Poland:
- Notarised and Apostilled Photocopies: Provide notarised and apostilled copies of passports of directors and owners.
- Deed of Formation: Prepare and sign the founding documents before a Polish notary.
- Management Board: Establish a management board for the company.
- Proof of Office: Provide evidence of a local physical office (e.g., lease agreement) or a virtual office.
- Corporate Bank Account: Open a corporate bank account in Poland.
- Minimum Authorised Capital: Ensure a minimum authorised capital of 5,000 PLN (approx. 1,080 EUR).
- REGON Number: Obtain a REGON (statistical) number.
- NIP Number: Obtain a NIP (tax identification) number.
- Social Insurance Institution: Provide proof of application for the company’s registration with the Social Insurance Institution.
Application Process:
- Submit the company formation application along with required documents to the National Court Register (KRS).
- Registration fee is 500 PLN (approx. 108 EUR).
- The consideration of the application may take up to seven days.
Poland’s framework allows foreign non-residents to establish a Sp. z o. o. remotely by signing a power of attorney. This streamlined process ensures you can efficiently set up your crypto business and comply with Polish regulations.
Cryptocurrency Taxes in Poland 2024
Corporate Income Tax Act Changes:
- Capital Gains Exemption: Now applies even if the sold company holds at least 5% shares in another company, and if the subsidiary benefits from exemptions in Special Economic Zones or Polish Investment Zones.
- Minimum Income Tax: The implementation is suspended until the end of 2024, and the profitability ratio that triggers this tax is increased from 1% to 2%.
- Tax Haven Transactions: The documentation thresholds for transactions with tax haven entities have been increased to 2.5 million PLN for financial transactions and 500,000 PLN for non-financial transactions.
Crypto Taxation Framework:
- OECD’s Crypto-Asset Reporting Framework (CARF): Poland is aligning its crypto tax reporting with CARF to raise international standards. This means automated crypto tax reporting and taxpayer information sharing are on the horizon.
- Applicability of CARF: These rules apply to companies and individuals providing crypto exchange services and other crypto transfers, including retail payments. CARF may also extend to online and offline crypto wallets in the near future.
Exclusions: CARF currently excludes cryptocurrencies that are not used for payment or investment and centralised stablecoins.
With these changes, Poland is ensuring its crypto tax environment remains robust and compliant with international standards while supporting the growth and regulation of the cryptocurrency market.
Regulatory Penalties and Suspension
If a crypto company fails to obtain Polish crypto authorisation and become part of the Register of Virtual Currencies prior to starting its economic activities in Poland, it can receive a fine of 100,000 PLN (approx. 21,600 EUR).
Economic crypto activities can be suspended if:
- A company applies for the removal from the Register of Virtual Currencies and notifies of the suspension by submitting an electronic form via ePuap
- The authorities responsible for the maintenance of the Register of Virtual Currencies remove a company from the Register when regulatory rules are breached
When it comes to adjusting to the EU-imposed regulations, cryptocurrency companies should be prepared to quickly become ever more competent in compliance-related issues. We kindly remind you that our team of highly skilled and dynamic lawyers is here to assist you with navigating new regulations.
Our highly experienced and trusted lawyers will be pleased to provide you with tailored support in registering with the Register of Virtual Currencies and in obtaining a crypto license in Poland. We closely monitor local regulations and are therefore well-prepared to guide our clients through every stage of the registration process in an efficient manner.
Also, lawyers from Regulated United Europe provide legal services for obtaining a crypto license in Europe.
Hi, are you looking to start your crypto project in Poland? Write to me and I will navigate you through all of the stages of applying for a VASP license in Poland.
Additional information
FREQUENTLY ASKED QUESTIONS
In Poland, are crypto activities regulated?
As part of its responsibility to ensure the effective functioning and development of the Polish financial market, the Polish Financial Supervision Authority also participates in the preparation of draft legal acts for the supervision of the financial markets.
A register of virtual currencies, called the Register of Virtual Currencies, is kept by the Tax Administration Chamber, which regulates cryptocurrency businesses separately.
How does a Polish crypto license process work?
There is no robust crypto licensing process in Poland yet, and the Tax Administration Chamber continues to issue Polish crypto authorizations, which are equivalent to cryptocurrency licenses. AML/KYC procedures require that you first be included in the Register of Virtual Currencies if you plan on providing crypto products or services in Poland.
An authorised Polish crypto business can provide the following services:
- Exchange of fiat currencies and cryptocurrencies
- Exchange of different cryptocurrencies
- Crypto exchange brokerage
- Provision and maintenance of cryptocurrency wallets
The Electronic Platform for Public Administration Services (ePUAP) allows crypto authorisation applications to be submitted online. The documents must be accompanied by all the required documentation and contain consistent factual information. Despite that, any error can be corrected, although the process is usually delayed as a result. In the event that an application does not have any reason to be rejected, the authorisation is granted within 14 days of receiving it.
To engage in crypto activities in Poland, do I need to start a Polish company?
The answer is yes. Companies planning to engage in cryptocurrency-related economic activities in Poland are legally required to register with the Chamber of Tax Administration's Register of Virtual Currencies.
Getting into the Register is mandatory for companies engaged in the following activities:
- Fiat money exchanged for virtual currencies
- Exchange of virtual currencies one for another
- Provision and maintenance of accounts for virtual currencies (wallets)
- Intermediation for the exchange of virtual currencies (brokerage)
Virtual currency companies should also apply for licenses based on these activities. Licences may be obtained by a company either one at a time, or by obtaining them all at once.
KYC procedures have been amended to include the Register. The sum of 100,000 PLN (approx. 21,646 EUR) may be fined to companies that fail to register prior to launching their crypto activities. Legal requirements must be met before crypto businesses can go through the mandatory crypto-authorization process.
What is the process for obtaining a Polish crypto license?
Poland has not yet established a comprehensive crypto licensing process, requiring fees for licensing and supervision, and the Tax Administration Chamber continues to issue crypto authorizations similar to cryptocurrency licences. AML/KYC procedures require you to be included in the Register of Virtual Currencies if you plan to offer crypto products or services in Poland.
Is it difficult to get a license?
The Electronic Platform for Public Administration Services (ePUAP) allows crypto authorisation applications to be submitted online. All required documentation must accompany them, as well as consistent, factual information. The application process can be delayed if errors are corrected, although this is usually not a serious issue. Applicants whose applications are not rejected are granted authorisation within 14 days of receiving them.
Is it possible for non-Polish residents to own crypto companies?
Polish crypto authorisation can be obtained by opening a Polish Limited Liability Company (Sp. z o. o.). One or more shareholders can establish it within several weeks. They can all be foreigners who do not reside in Poland. Neither a local director nor a foreign director is required. Additionally, a power of attorney can be used for the establishment of a new company remotely.
Is it possible for the board of a Polish crypto company to include members who are not Polish citizens?
Local management board members are not required to be hired.
What if I don't have a bank account and I want to obtain a license?
Opening a Polish Limited Liability Company (Sp. z o. o.) is one way to receive Polish crypto authorisation. Poland requires a corporate bank account before you can start a company.
Do virtual currency service providers have to maintain a minimum amount of authorized capital in order to operate?
It is required that virtual currency service providers have at least 5,000 PLN (approximately 1,080 EUR) of authorized capital.
Can you tell me how long a crypto-license lasts?
The Polish government issues cryptocurrency licenses on an indefinite basis.
Is it possible to deposit cryptocurrency as authorized capital?
Some financial services are developing policies that are more flexible about crypto payments, but they are still not allowed yet. It is possible that this option will be offered in the future.
What is the method of paying in the charter capital of a crypto company?
Applicants are required to make a deposit in Euros (EUR) of the authorized capital.
Does Poland require capital deposits before opening a company or obtaining a crypto-license?
The minimum authorized capital must be deposited by applicants in Lithuania in order to establish a company. This step must be completed before a company can be registered with the local authorities.
Polish crypto licenses offer what benefits?
In addition to implementing technical developments quickly, Poland offers excellent conditions for those seeking to establish businesses and obtain crypto licenses. Among the most important benefits are:
- Implementation of projects quickly
- Possibility to purchase an off-the-shelf solution
- No share capital requirement
- No obligatory local staff member
Cryptocurrency companies in Poland are audited?
All types of companies established in Poland are obligated to comply with the annual reporting and auditing requirements. Annual financial statements and annual income tax declarations must be submitted to the e-Tax Office. Moreover, cryptocurrency companies are obligated to submit AML reports to the General Inspector of Financial Information. VAT reporting is submitted either monthly or quarterly.
A certified audit, on the other hand, is required only if a Limited Liability Company meets at least two of the following conditions: annual net revenue exceeds 5 mill. EUR, annual turnover exceeds 2,5 mill. EUR, annual employment is 50 or more full-time employees.
Are there any anti-money laundering and anti-terrorism measures in place in Poland?
In the Polish cryptocurrency and other financial markets, money laundering and terrorist financing are primarily combated by Act of March 1, 2018, which is also known as the Polish AML Act.
It is the first Polish law to define the AML-specific term of "virtual currencies" and their regulation. AML principles are stipulated for virtual currency institutions that engage in the following activities:
- Virtual currencies exchange
- Exchange of virtual currencies for fiat money
- Cryptocurrency brokerage
- Account provision and maintenance services for virtual currencies (crypto wallets)
The General Inspector of Financial Information is at the forefront of the Polish anti-money laundering and counter-terrorist financing system. The aim is to increase transparency and impose protection from suspicious transactions.
The tasks of the institution include the following:
- Enforcing compliance with the Polish AML Act
- Requesting information about transactions from the financial institutions
- Analysing information about the financial market actors that might be linked to money laundering or terrorist financing
- Suspending transactions and blocking accounts
- Cooperating with national authorities as well as foreign institutions which they’re also authorised to share information with
- Assessing and reporting on the national risks pertaining to money laundering and terrorist financing
- Creating strategies to combat money laundering and terrorist financing
- Imposing administrative penalties
- Communicating information about their area of work through the public channels
Can a Polish crypto company open a bank account?
In order to establish a new Limited Liability Company in Poland, you need to register a corporate banking account. Here are more requirements when opening a company:
Key steps of opening a new Limited Liability Company in Poland:
- Having a unique company name prepared for the registry
- Drawing up a power of attorney in case of remote registration
- Getting a notarised photocopy of the passport of the director/founder of the company with an apostille attached to it
- Preparing the Deed of Formation (the founding documents for an Limited Liability Company must be prepared and signed in front of a Polish notary)
- Registering local office premises is a prerequisite (the lease agreement will suffice to prove it), a virtual office might be an option too
- Opening a corporate bank account in Poland
- Transferring the authorised capital to the new account, the minimum of which is 5,000 PLN (approx. 1,084 EUR), which is subject to a 0,5% Civil Transaction Tax
- Obtaining a REGON (statistical) number
- Obtaining a NIP (tax identification) number
- Applying for a VAT number
- Submitting an application to register the company with the National Court Register (KRS); it will require such information as REGON number, NIP number and the application for the company’s registration with the Social Insurance Institution (the registration fee – 500 PLN (approx. 108 EUR), the consideration may take up to 7 days)
- Appointing a Management Board of the company
What about the taxation?
There is no crypto-specific tax, however cryptocurrency companies operating in Poland, depending on their legal structure, are subject to paying a variety of already existing taxes which in certain cases might be spared, considering that Poland has agreements on the avoidance of double taxation with more than 80 countries.
The most common taxes applicable to a Limited Liability Company in Poland include Corporate Income Tax, Personal Income Tax, VAT, Stamp Duty, Real Estate Tax and Excise Duty. Also, just like any other employer, a virtual currencies company, if employing individuals, is obligated to pay Social Insurance and Health Insurance contributions to the Polish government.
Standard tax rates in Poland:
- Corporate Income Tax – 19% (if annual revenue doesn’t exceed 2 mill. EUR, a 9% rate applies)
- Personal Income Tax – 17%-32% depending on the taxable income band
- VAT – 23%
- Dividends withholding tax – 19%
Additional services for Poland
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CONTACT US
At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.
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Phone: +420 775 524 175
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