Poland’s financial authority participates in the crypto regulating race

The Financial Supervision Authority in Poland aims to take measures to regulate crypto. It invited financial institutions for a feedback on the same.

By · Jul 24, 2020 . 5min read

Source: Pexels

The Polish Financial Supervision Authority (KNP) launched the project “Positions of the Polish Financial Supervision Authority”(transalated) regarding the issuance and trading of crypto assets” earlier this month. Since then, the former is closely considering at regulating crypto assets.

According to Finance Magnets, the authorities are discussing as to how they can classify crypto assets under the Polish law. They also proposed a draft that explained the basic concept relating to digital currencies.

Poland’s journey with crypto so far

The KNP has been quite keen on the introduction of cryptocurrencies in Poland since 2018. It released a circular is 2018 that said the regulators would not ban cryptocurrencies or trading venues. Therefore, the authorities have also requested feedback from financial institutions on how they can adopt a uniform approach in regulating cryptocurrencies’, and it’s trading.

The Polish regulator invites feedback from financial institutions on a proposed legal framework, with the aim to provide a “uniform approach to the regulatory issues of entities intending to deal with the issuance and trading of crypto assets,”

the KNF said in a statement earlier this month.

The journey of Poland with cryptocurrencies has been quite disheartening. This was due to reasons relating to cybercrimes and security issues. Crypto exchanges were prone cryptocurrency scams, therefore making it difficult to sustain. Last year, cryptocurrency exchange BitMarket closed down citing liquidity issues. Whereas in reality, a lack of security and regulatory framework led to the crypto hack. However, crypto brokers have been dealing in virtual currencies like XTB amidst this distress.

The KNP needs to take strict measures to introduce a regulatory framework. Whether it will be classified under the cryptocurrency framework or any other framework is still a question. In conclusion, this year has been a milestone in crypto history as countries are adopting and acknowledging digital currencies.

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