The MiCAR Impasse in Poland: Regulatory Uncertainty Continues for Crypto-Asset Service Providers

Introduction – Poland's domestic MiCAR implementation uncertain, yet again

For some time now, Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on Markets in Crypto-Assets (“MiCAR”) has been in force in the EU. However, its application requires EU-Member States to implement domestic legislation enabling proper supervision to be exercised over the crypto-asset industry, including crypto-asset services providers (“CASP”), and the performance of certain duties by entities operating in the industry.

Poland is struggling to adopt domestic legislation which would enact MiCAR as well as Regulation (EU) 2023/1113 of the European Parliament and of the Council of 31 May 2023 on information accompanying transfers of funds and certain crypto-assets (“Transfer of Funds Regulation”). This is despite the fact that Poland has one of the most crypto-friendly societies in the EU, where it is estimated that ca. 3 million people own crypto-assets and operate on this market.

As we reported in early December 2025, the first attempt to implement the MiCAR and Transfer of Funds Regulation in the Polish legal system was vetoed by the President of Poland (“First Act”), leaving Poland’s domestic implementation framework uncertain despite the MiCAR’s direct applicability across the EU. On 12 February 2026, the President of Poland vetoed another draft act introducing the MiCAR and Transfer of Funds Regulation into the Polish legal system (“Second Act”). This should scarcely come as a surprise given that the Second Act was to a large extent a copy-and-paste version of the First Act. The reasoning behind these vetoes has not changed and the most controversial propositions were highlighted in our recent December article (https://www.twobirds.com/en/insights/2025/poland/the-future-of-poland's-crypto-asset-services-market-navigating-regulatory-uncertainty) .

Polish Crypto Regulation – Current State of Play

With both the First Act and the Second Act vetoed, Poland is back to square one when it comes to the regulation of crypto-assets. It should be noted that both the MiCAR and Transfer of Funds Regulation have been in force for over a year now. This means that crypto-asset market participants should be able to operate under the MiCAR (e.g., by applying for authorisation to operate as a CASP), and public authorities should supervise such activities (subject to grandfathering periods). With no implementing legislation in force, Polish entities and Polish public authorities have no legal bases on which to rely. 

This means that virtual-assets services providers (“VASPs”) which have been operating in Poland prior to the MiCAR cannot apply for a licence to operate as a crypto-asset services provider (“CASP”). Therefore, these entities might find themselves without any authorisation to provide crypto-asset services after 1 July 2026. 

The Polish Financial Supervision Authority’s View on the Crypto Regulatory Vacuum in Poland

On 10 February 2026, the Polish Financial Supervision Authority (“PFSA”) issued a statement addressing the regulatory vacuum created by the absence of Polish legislation implementing the Markets in Crypto-Assets Regulation (MiCAR). The statement provides critical clarity for the crypto sector following the presidential vetoes of the First Act and Second Act.

Under the grandfathering provisions set out in Article 143(3) of the MiCAR, entities currently operating in Poland as VASPs can continue their activities under existing Polish law until 1 July 2026, or until they obtain CASP authorisation, or until such authorisation is refused—whichever comes first. However, the path forward is fraught with obstacles. If Poland fails to designate a competent authority by 1 July 2026, domestic providers will lose their ability to continue operations under the transitional regime and will be unable to obtain the necessary CASP licence until such authority is established. Even if implementing legislation is passed before the deadline, the lengthy licensing process makes it highly unlikely that Polish VASPs will secure CASP authorisation in time, forcing them to offboard clients and cease operations. In essence, this would mean that even if the MiCAR were to be implemented in Poland right now, it would be highly unlikely that VASPs would be able to maintain business continuity, as the licensing process would extend beyond 1 July 2026.

At the same time, the regulatory impasse only affects providers based in Poland. CASPs authorised in other EU Member States can provide services throughout the Union, including in Poland, by way of passporting pursuant to Article 65 of the MiCAR and to begin to offer services on Polish territory even in the absence of a designated Polish competent authority, as they remain subject to supervision by their home country regulator. This cross-border activity will continue unaffected after 1 July 2026, creating a two-tier market where foreign providers operate freely whilst Polish entities face existential uncertainty. This outcome was explicitly confirmed in the PFSA statement.

Poland at a Crossroads – What Possible Solutions Are There for Crypto Market Players?

The future with regard to the implementation of an appropriate act remains highly uncertain. Time is running out for its preparation, and the window for meaningful implementation before the 1 July 2026 deadline is rapidly closing. Given that the presidential veto of the Second Act will still be subject to a parliamentary override procedure (which, due to constitutional requirements, has a very low chance of success), work on a new act implementing MiCAR and the Transfer of Funds Regulation is expected to commence at the turn of February and March, at the earliest. Considering the timelines and pace of legislative work in Poland, the likelihood that any act (setting aside the possibility of another presidential veto) will be adopted before the end of the MiCAR grandfathering period is negligible.

For Polish VASPs that have not yet secured CASP authorisation abroad, the options are narrowing rapidly. Strategic alternatives include partnering with entities offering white-label solutions or pursuing licensing in more accommodating EU jurisdictions. However, even in crypto-friendly Member States, the authorisation process typically takes several months — a timeline that may well extend beyond the 1 July 2026 cut-off. With less than five months remaining, Polish crypto-asset service providers face a stark choice: secure foreign authorisation, partner with licensed entities, or prepare to exit the market entirely.

Poland currently finds itself significantly behind schedule and in a difficult position regarding crypto-asset market regulation. However, yet again, there is hope that the presidential veto will force the next legislative attempt to facilitate the creation of a less burdensome environment for the provision of crypto-assets services in Poland.