According to official EU members’ records, nearly half of all cryptocurrency companies are located in Poland. In this article, we aim to examine the key factors that make this country appealing for cryptocurrency operations.
Opening a legal entity
Before providing cryptocurrency services and being registered in the Virtual Asset Service Provider (VASP) Register in Poland, you need to establish your own business there. The most appropriate variant is to open a limited liability company (LLC), which is easy to do in Poland (as it does not require you to be a Polish resident and open a local office). The registered capital for polish LLC must be set at 5000 PLN (approximately 1200 EUR).
Which crypto activities fall under the Polish authorisation?
Crypto activities that you can perform in Poland only after obtaining official registration are:
Requirements for the founders of VASP
A crypto company can be founded by one or more individuals. We recommend establishing the company with two or more founders, as a single founder would be required to make mandatory social security contributions (in the amount of 2000 PLN per month).
There are two main requirements for individuals planning to establish VASP.
Firstly, founders of VASP cannot be persons accused of an intentional crime against: the operation of state institutions and local government, the justice system, the credibility of documents, property, economic turnover and property interests in civil law transactions, money and security trading, financing of terrorist offences, a crime committed for the purpose of material or personal gain or an intentional fiscal offence.
Secondly, these persons are required to have knowledge or experience related to the provision of virtual currency services. This implies compliance with the following requirements:
Thus, a document verifying experience could be, for example, an extract from the Central Register of Business Activity and Information confirming the business activity, along with documents proving that the entrepreneur has carried out activities related to virtual currencies for at least one year. These documents may include contracts with clients from that period, confirming that the relevant services were provided to the clients.
Regarding completion of training or a course, laws do not define specific categories of acceptable courses or training. What matters is that the course or training cover legal or practical aspects related to virtual currency business.
The submission of these documents is not necessary for registration. However, a signed declaration is required, in which you need to prove that the data contained in the application are complete and true.
Internal AML procedure
According to the Polish Act on counteracting money laundering and financing of terrorism, each VASP in Poland shall introduce an internal procedure on counteracting money laundering and financing of terrorism. This procedure should include, in particular, the following rules:
In addition, Vasp shall appoint senior management members responsible for the performance of the obligations related to compliance with the counteracting money laundering and financing of terrorism or choose such a person among members of such a governing body (AML officer). It could be either a full-time employee or one of the company’s directors.
Legal basis for conducting crypto activities in Poland
The provision of crypto services in Poland does not require obtaining a special licence. The only thing you need to do is to enrol your company in the VASP Register. The official responsible for ensuring the operation of the registry is the Director of the Tax Administration Chamber in Katowice. You can submit an application to enter the register only online via the e-PUAP platform (stamp fee — 616 PLN — near 142 EUR).
The application must include:
In addition to the application, you must submit the following documents:
Finally, the authorities will have 14 days to consider your application and enter your company in the Register.
As we can see, Poland does not issue specific licences for virtual currency providers, which means you cannot state on your resources that your activities are «licensed» by Polish authorities.
Please note that if you provide virtual currency services without being registered in the official register of such providers, you will face a financial penalty of up to 100,000 PLN.
VASP taxation
The main tax a VASP in Poland is required to pay is the Corporate Income Tax (CIT), which is applied at a standard rate of 19%. However, if a company’s income does not exceed 2 million EUR in the tax year, it will be subject to a reduced rate of 9%.
It is important to mention that only the revenue from exchanging virtual currency for payment, goods, services, or property rights (excluding virtual currency), or from fulfilling obligations using virtual currency, will be subject to CIT. This means that, for instance, expenses from converting one virtual currency into another will not be taxed.
One more important issue is that costs incurred in foreign currencies shall be converted into zlotys at the average exchange rate announced by the National Bank of Poland.
MICA Regulation
Starting on December 30, 2024, the new Markets in Crypto-Assets Regulation (MICA) will come into force in the EU, creating a unified regulatory framework for the management of crypto assets in the EU. These rules outline the minimum capital requirements for starting a Crypto-Asset Service Provider (CASP), the need to obtain special licences for engaging in crypto activities, and necessitates the establishment of a local office along with EU residency.
However, for crypto-companies registered in EU member states until 30 December 2024, MICA provides a transitional period. According to the Polish draft law on the harmonisation of national legislation with the MICA, the transitional period in Poland will last until 30 December 2025 (which is currently one of the longest in Europe). Therefore, if you manage to register a VASP before the MICA comes into force, your operations will fall under the existing Polish laws regarding crypto activities.
Benefits of opening VASP in Poland
Considering the factors mentioned above, we can conclude that Poland presents highly favourable conditions for establishing VASPs. You do not have to be a Polish citizen or resident, open a local office, hire employees, or stay in Poland while doing business. From a financial perspective, this country encourages business foundation by setting a low minimum share capital requirement, maintaining not high tax rates, and offering simple bureaucratic procedures for setting up a crypto company.
Opening a legal entity
Before providing cryptocurrency services and being registered in the Virtual Asset Service Provider (VASP) Register in Poland, you need to establish your own business there. The most appropriate variant is to open a limited liability company (LLC), which is easy to do in Poland (as it does not require you to be a Polish resident and open a local office). The registered capital for polish LLC must be set at 5000 PLN (approximately 1200 EUR).
Which crypto activities fall under the Polish authorisation?
Crypto activities that you can perform in Poland only after obtaining official registration are:
- exchange between virtual currencies and means of payment;
- exchange between virtual currencies,
- the intermediation of the exchanges referred to above,
- the keeping of accounts providing rightholders with the possibility to use virtual currency units, including the conduct of exchange transactions.
Requirements for the founders of VASP
A crypto company can be founded by one or more individuals. We recommend establishing the company with two or more founders, as a single founder would be required to make mandatory social security contributions (in the amount of 2000 PLN per month).
There are two main requirements for individuals planning to establish VASP.
Firstly, founders of VASP cannot be persons accused of an intentional crime against: the operation of state institutions and local government, the justice system, the credibility of documents, property, economic turnover and property interests in civil law transactions, money and security trading, financing of terrorist offences, a crime committed for the purpose of material or personal gain or an intentional fiscal offence.
Secondly, these persons are required to have knowledge or experience related to the provision of virtual currency services. This implies compliance with the following requirements:
- having at least one year of experience in activities related to the provision of virtual currency services, or
- completion of training or a course covering legal or practical aspects of providing virtual currency services.
Thus, a document verifying experience could be, for example, an extract from the Central Register of Business Activity and Information confirming the business activity, along with documents proving that the entrepreneur has carried out activities related to virtual currencies for at least one year. These documents may include contracts with clients from that period, confirming that the relevant services were provided to the clients.
Regarding completion of training or a course, laws do not define specific categories of acceptable courses or training. What matters is that the course or training cover legal or practical aspects related to virtual currency business.
The submission of these documents is not necessary for registration. However, a signed declaration is required, in which you need to prove that the data contained in the application are complete and true.
Internal AML procedure
According to the Polish Act on counteracting money laundering and financing of terrorism, each VASP in Poland shall introduce an internal procedure on counteracting money laundering and financing of terrorism. This procedure should include, in particular, the following rules:
- actions and measures taken to reduce the risk of money laundering and terrorism financing, as well as effective management of identified risks in these areas;
- guidelines for identifying and assessing money laundering and terrorism financing risks related to specific business relationships, including the procedures for reviewing and updating previous risk assessments;
- measures implemented for the effective management of identified money laundering and terrorism financing risks;
- procedures for applying customer due diligence measures.
- rules for maintaining records and storing information.
- internal control or compliance oversight procedures to ensure the institution’s activities align with anti-money laundering and terrorism financing regulations, along with the conduct guidelines defined in internal procedures.
In addition, Vasp shall appoint senior management members responsible for the performance of the obligations related to compliance with the counteracting money laundering and financing of terrorism or choose such a person among members of such a governing body (AML officer). It could be either a full-time employee or one of the company’s directors.
Legal basis for conducting crypto activities in Poland
The provision of crypto services in Poland does not require obtaining a special licence. The only thing you need to do is to enrol your company in the VASP Register. The official responsible for ensuring the operation of the registry is the Director of the Tax Administration Chamber in Katowice. You can submit an application to enter the register only online via the e-PUAP platform (stamp fee — 616 PLN — near 142 EUR).
The application must include:
- business name;
- NIP (Polish tax identification number);
- information on virtual currency services provided;
- qualified electronic signature, trusted signature or personal signature of the applicant:
In addition to the application, you must submit the following documents:
- statement of meeting the conditions required by law to perform virtual currency activities;
- statement of impunity (showing your awareness of criminal liability for making a false statement about provided data);
- proof of payment of stamp duty
Finally, the authorities will have 14 days to consider your application and enter your company in the Register.
As we can see, Poland does not issue specific licences for virtual currency providers, which means you cannot state on your resources that your activities are «licensed» by Polish authorities.
Please note that if you provide virtual currency services without being registered in the official register of such providers, you will face a financial penalty of up to 100,000 PLN.
VASP taxation
The main tax a VASP in Poland is required to pay is the Corporate Income Tax (CIT), which is applied at a standard rate of 19%. However, if a company’s income does not exceed 2 million EUR in the tax year, it will be subject to a reduced rate of 9%.
It is important to mention that only the revenue from exchanging virtual currency for payment, goods, services, or property rights (excluding virtual currency), or from fulfilling obligations using virtual currency, will be subject to CIT. This means that, for instance, expenses from converting one virtual currency into another will not be taxed.
One more important issue is that costs incurred in foreign currencies shall be converted into zlotys at the average exchange rate announced by the National Bank of Poland.
MICA Regulation
Starting on December 30, 2024, the new Markets in Crypto-Assets Regulation (MICA) will come into force in the EU, creating a unified regulatory framework for the management of crypto assets in the EU. These rules outline the minimum capital requirements for starting a Crypto-Asset Service Provider (CASP), the need to obtain special licences for engaging in crypto activities, and necessitates the establishment of a local office along with EU residency.
However, for crypto-companies registered in EU member states until 30 December 2024, MICA provides a transitional period. According to the Polish draft law on the harmonisation of national legislation with the MICA, the transitional period in Poland will last until 30 December 2025 (which is currently one of the longest in Europe). Therefore, if you manage to register a VASP before the MICA comes into force, your operations will fall under the existing Polish laws regarding crypto activities.
Benefits of opening VASP in Poland
Considering the factors mentioned above, we can conclude that Poland presents highly favourable conditions for establishing VASPs. You do not have to be a Polish citizen or resident, open a local office, hire employees, or stay in Poland while doing business. From a financial perspective, this country encourages business foundation by setting a low minimum share capital requirement, maintaining not high tax rates, and offering simple bureaucratic procedures for setting up a crypto company.