The EU MiCA legislation comes into effect, Poland becomes a new hotbed for Web3 entrepreneurship

Recently, the European Web3 market has welcomed new opportunities, with Poland showing great potential. As the sixth largest economy in the European Union, Poland holds an important position in the Central and Eastern European region. Although its fintech ecosystem started relatively late, it is experiencing strong development momentum.

Poland has become a favored landing spot for Web3 enterprises. As of 2024, the number of registered virtual asset service providers (VASP) in the country exceeds 1,100, with 126 Web3 startups, including well-known projects like Golem Network and Fluency.

Poland has a population of about 38.26 million, ranking fifth in the European Union. According to the latest survey, 94% of the Polish population is aware of cryptocurrencies, but only 6.2% have a deep understanding, indicating that there is still significant room for market penetration. Cryptocurrencies in Poland are primarily used as investment tools, with over half of respondents viewing them as investment and speculative assets.

The Polish Financial Supervision Authority ( KNF ) is the country's main financial regulatory body, responsible for overseeing financial markets, including Web3. Recently, the KNF issued a warning to a trading platform operating in Poland without authorization, indicating its regulatory stance on the Web3 industry.

With the MiCA legislation coming into effect, Poland is accelerating its local legislation to align with it. The draft "Polish Law on the Crypto Assets Market" significantly shortens the transition period, requiring existing VASP entities to apply for a CASP license by June 30, 2025. The law aims to promote market transparency and compliance.

Poland's regulations on taxing crypto assets have matured. Income generated from cryptocurrency transactions is considered capital income, with a tax rate of 19%. Taxpayers are required to accurately report their income and fulfill their tax obligations, regardless of the amount.

Overall, Poland is an attractive emerging market for Web3. Its active user base, well-established regulatory framework, and strong economic foundation provide a broad development space for Web3 companies. However, with the implementation of new regulations, companies will also face stricter compliance requirements. In this market full of opportunities and challenges, Web3 companies need to fully understand local regulations and develop suitable strategies to seize the immense potential of the Polish Web3 market.