Poland’s financial watchdog, the Komisja Nadzoru Finansowego (KNF), has been granted new authority to block access to cryptocurrency for up to 96 hours independently. This move comes amidst an influx of crypto firms into the region ahead of the European Union’s Markets-in-Crypto-Assets (MiCA) bill.
KNF’s Crypto Account Blocking Authority
Under the new regulations, KNF can block crypto accounts for up to 96 hours in cases of suspected criminal activity related to the funds in the account, as explained by tax expert Izabela Deryło. Additionally, with the prosecutor’s office approval, the regulator can freeze funds for up to six months.
According to Deryło, “In the event of suspicion of a transaction being linked to the commission of a crime, the KNF will be able to independently block the accounts of cryptocurrency holders.”
The introduction of these regulations has been met with negative reactions from crypto investors in Poland. Many argue that the rules grant KNF excessive powers, raising concerns about potential abuse.
Poland Aligning with MiCA Legislation
While the government and KNF assert that these regulations are in line with the crypto regulations outlined in Europe’s MiCA legislation, there are notable differences. MiCA mandates crypto exchanges to report transactions regardless of the amount, but it does not include provisions for blocking accounts.
These developments highlight Poland’s efforts to regulate the growing crypto market within its borders, aiming to strike a balance between fostering innovation and ensuring financial security. However, the extent of regulatory power granted to KNF raises questions about its potential impact on the crypto industry and investor confidence.
