The EU MiCA regulation takes effect, and Poland becomes a hotbed for Web3 entrepreneurship.

With the formal implementation of the EU's regulatory framework for crypto assets (MiCA), the enthusiasm of Web3 companies entering Europe continues to rise. This article will delve into Poland, a highly promising Web3 market.

The Development Potential of the Web3 Market in Poland

As the sixth largest economy in the European Union, Poland occupies an important position in the Central European region. Although its fintech ecosystem started relatively late, it is developing rapidly. As the largest financial services market in Central and Eastern Europe, Poland is attracting talent and investment from the region.

Currently, Poland has become the preferred location for many Web3 companies to establish a presence. As of 2024, the number of active VASP entities in Poland's virtual currency activity register has exceeded 1,100. Additionally, Poland has 126 Web3.0 startups, demonstrating a thriving atmosphere in this field.

Analysis of the Web3 User Base in Poland

Poland has a population of approximately 38.26 million, ranking fifth in the European Union. According to a survey report from 2023, more than 94% of the Polish public stated they are familiar with cryptocurrencies, but only 6.2% have an in-depth understanding, indicating that there is still a huge space for market penetration.

In Poland, cryptocurrencies are primarily viewed as investment and speculation tools, with over half of the respondents using them for this purpose. The median investment in cryptocurrencies is 1,000 zloty, and the average is 7,642 zloty.

It is worth noting that the frequency of male investment in cryptocurrencies is three times that of females. Individuals under 34 years old account for 41% of all cryptocurrency holders. Furthermore, the prevalence of cryptocurrencies increases with higher levels of education.

Poland Web3 Regulatory Framework

The Polish Financial Supervision Authority ( KNF ) is the main financial regulatory body in the country, responsible for overseeing various financial market participants, including Web3 companies. The regulatory objective of the KNF is to ensure the stability, security, and transparency of financial markets, protecting the interests of market participants.

Poland is actively advancing domestic legislative work to align with MiCA. The draft "Polish Cryptocurrency Market Act" was published on December 9, 2024, and is particularly important for existing VASP registered entities and those preparing to apply for a CASP license.

It is worth noting that the transitional period for cryptocurrency regulation in Poland is shorter than the timeline set by MiCA. According to the draft, existing VASP entities must submit their CASP license applications by June 30, 2025. If a complete application is submitted before May 1, 2025, the operating period may be extended until September 30, 2025, or the date of the license decision, whichever is earlier. The original VASP registration system will be abolished starting from October 1, 2025.

Poland's Cryptocurrency Tax Policy

Poland's taxation regulations on crypto assets are relatively mature. Income generated from cryptocurrency transactions is considered income from capital, with a tax rate of 19%. It is important to note that not only does exchanging virtual currency for fiat currency create a tax obligation, but exchanging it for goods, services, or property also triggers taxation.

However, exchanging one cryptocurrency for another or for a stablecoin does not create a tax liability. Nevertheless, taxpayers must still retain relevant transaction records for review.

Conclusion

Poland, as an important economy in Central and Eastern Europe, has an active Web3 user base and a continuously improving regulatory framework, providing good development opportunities for Web3 enterprises. However, the implementation of the MiCA legislation and the introduction of local regulatory frameworks in Poland have also brought new compliance challenges. When Web3 companies enter the Polish market, they need to fully understand local regulations and establish a sound compliance system to seize the development opportunities of the Web3 era.