The Implementation of the EU MiCA Legislation, Poland Becomes a New Hotbed for Web3 Entrepreneurship

With the official implementation of the EU's Markets in Crypto-Assets (MiCA) regulation, Web3 companies are setting their sights on the European market. Among many potential markets, Poland stands out with its unique advantages, becoming a new favorite for Web3 entrepreneurs.

The Potential of the Polish Market

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

Currently, Poland has over 1,100 active virtual asset service provider (VASP) entities and 126 Web3.0 startups, including well-known projects such as billon and Golem Network. This data fully demonstrates the thriving development of Poland's Web3 industry.

Huge user base

Poland has a population of nearly 38.26 million, ranking fifth in the European Union. According to the latest survey, 94% of Poles are aware of cryptocurrencies, but only 6.2% have an in-depth understanding, indicating that there is still significant room for market penetration.

The survey also shows that cryptocurrencies are primarily viewed as investment and speculative tools in Poland. The median cryptocurrency investment among Polish investors is 1,000 zloty, with an average of 7,642 zloty. Notably, young people (under 34) account for 41% of all cryptocurrency holders, and the investment frequency among males is three times that of females.

Regulatory Framework

The Polish Financial Supervision Authority (KNF) is the main financial regulatory body responsible for overseeing financial market participants, including Web3 enterprises. With the implementation of MiCA, Poland is advancing the legislative work on the "Polish Crypto Assets Market Law" to align with EU regulations.

It is worth noting that the transition period in Poland is shorter than what is stipulated by MiCA. Existing VASP entities must apply for a CASP license by June 30, 2025, and the original VASP registration system will be abolished starting October 1, 2025. This initiative aims to expedite regulatory implementation and promote market transparency and compliance.

Tax Policy

Poland's tax regulations on cryptocurrency assets are relatively mature. Income generated from cryptocurrency trading is considered capital income, with a uniform tax rate of 19%. It is worth noting that not only does exchanging cryptocurrency for fiat currency create a tax obligation, but exchanging it for goods, services, or property also requires taxation.

However, the exchange between cryptocurrencies or the exchange into stablecoins does not trigger tax obligations. Nevertheless, taxpayers still need to retain relevant transaction records for future reference.

Conclusion

Poland, as an important economy in Central and Eastern Europe, offers good development opportunities for Web3 enterprises due to its active Web3 user base and continually improving regulatory framework. However, the implementation of the MiCA legislation and the future introduction of local regulatory frameworks in Poland will also bring new compliance challenges. Web3 entrepreneurs need to closely monitor policy changes and be well-prepared to seize opportunities in this emerging market.