Poland: An Emerging Hotspot for Web3 Development

The implementation of the EU's Regulation on Markets in Crypto-Assets ( MiCA ) has made Europe a focal point for Web3 companies. Among many European countries, Poland stands out with its unique advantages, becoming a highly promising Web3 market.

Poland has a strong economic power

As the sixth largest economy in the European Union, Poland occupies an important position in the Central European economy. Although its fintech ecosystem started relatively late, its development potential is immense. As the largest financial services market in Central and Eastern Europe, Poland is attracting talent and investment from the region, and its favorable macroeconomic situation indicates a broad development prospect.

Poland Attracts Web3 Companies to Settle

Poland, as an important commercial center in Central and Eastern Europe, has attracted a large number of companies to establish entities here. This trend has also extended to the Web3 field. As of 2024, the number of active registered VASP entities in Poland's virtual currency activity register has exceeded 1,100, showing a thriving development in this field. Currently, there are 126 Web3.0 startups in Poland, covering multiple sectors.

Poland has a large potential Web3 user base

Poland has a population of about 38.26 million, ranking fifth in the EU. According to a 2023 survey report, over 94% of Polish respondents stated that they have heard of cryptocurrencies, but only 6.2% have a deep understanding, indicating that there is still significant room for market penetration.

In Poland, cryptocurrencies are primarily viewed as investment and speculative assets, with over half of respondents using them for this purpose. The proportion of male investors is significantly higher than that of female investors, and younger individuals and those with higher education levels are more inclined to hold crypto assets.

Poland Web3 Regulatory Framework

The Polish Financial Supervision Authority ( KNF ) is the main financial regulatory body responsible for supervising Web3 companies operating or established in Poland. The regulatory objectives of KNF are to ensure the normal operation, stability, security, and transparency of the financial market, and to protect the interests of market participants.

With the MiCA legislation coming into effect, Poland is advancing the legislative work on the "Polish Cryptocurrency Market Law" to align with EU regulations. This bill significantly shortens the transition period stipulated by MiCA, requiring existing VASP entities to submit applications for CASP licenses by June 30, 2025. The original VASP registration system will be completely abolished starting October 1, 2025.

Poland's Cryptocurrency Tax Policy

Poland's regulations on taxing crypto assets are relatively mature. Income generated from cryptocurrency transactions is considered as income from monetary capital, with a tax rate of 19%. It is important to note that not only the exchange of virtual currencies for fiat currency incurs a tax obligation, but also the exchange for goods, services, or property will incur a tax obligation. However, the exchange between cryptocurrencies does not trigger a tax obligation.

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, with the implementation of the MiCA legislation and changes in local regulations, Web3 companies will also face new compliance challenges. In this market full of opportunities and challenges, companies need to fully understand local laws and regulations and develop appropriate strategies to seize new opportunities in the Web3 era.