MiCA in Practice: Lack of National Regulations Prevents Obtaining CASP Authorization in Poland

As of 30 December 2024, the provisions of Regulation (EU) 2023/1114 of the European Parliament and of the Council on Markets in Crypto-Assets (MiCA) apply throughout the European Union. At the same time, in some Member States – including Poland – implementing legislation establishing the procedures necessary for the full application of MiCA has not yet been adopted. In this context, the most significant provisions from the perspective of both already active market participants and those planning to enter the crypto-asset market are those concerning the requirement to obtain an authorization to operate as a crypto-asset service provider (the so-called “CASP license”). The absence of implementing provisions effectively deprives entrepreneurs of the possibility to obtain such authorization in certain Member States – and, under certain circumstances, prevents them from carrying out their business activities altogether.

Previous Legal Status of Crypto-Asset Service Providers in Poland

Before the entry into force of the MiCA Regulation, Polish regulations governing crypto-assets were relatively simple. The only requirement for conducting business in this area was to obtain an entry in the register of virtual currency activities (the so-called VASP register – virtual asset service provider). This requirement was based on the Act of 1 March 2018 on Counteracting Money Laundering and the Financing of Terrorism, and its fulfilment consisted of undergoing a relatively uncomplicated administrative procedure which, provided that the application was complete and contained the required information, resulted in the entry in the register within fourteen days.

Application of MiCA, CASP Authorization, and Transitional Provisions

As of 30 December 2024, when the MiCA Regulation becomes directly applicable across the EU, entrepreneurs wishing to provide crypto-asset services are required to obtain a CASP authorization. The only exception applies to entities that were lawfully providing such services before that date. These entities may continue their operations under the previous legal regime until 1 July 2026 or until they obtain a CASP authorization – whichever occurs first. National legislation, however, may set a shorter transitional period.

Under the existing Polish regulations, this means that entities entered in the VASP register before 30 December 2024 may continue operating under the previous rules until 1 July 2026, or until a different date established by future Polish implementing legislation. All other entities must obtain a CASP authorization before commencing operations.

Obtaining CASP Authorization and the Lack of Polish Implementing Legislation

The process of obtaining a CASP authorization is regulated under Title V of the MiCA Regulation. Pursuant to Article 62(1), “legal persons or other undertakings intending to provide crypto-asset services shall submit an application for authorization to operate as a crypto-asset service provider to the competent authority of their home Member State.” The term “competent authority” is defined as the authority designated “by each Member State in accordance with Article 93 […]”. The term “home Member State” means, in the case of an entity established in the Union, the Member State in which that entity has its registered office.

From the perspective of Polish law, this means that entities intending to provide crypto-asset services with a registered office in Poland must apply for a CASP authorization from the competent authority designated by Poland under Article 93 of MiCA. However, Polish legislation has not yet vested such competence in any authority. Changes in this regard are expected soon: on 29 September 2025, the draft Polish Crypto-Assets Market Act, adopted by the Sejm on 26 September 2025, was submitted to the Senate. The Act includes provisions implementing MiCA and designates the Polish Financial Supervision Authority (KNF) as the competent authority within the meaning of Article 93. The Senate has 30 days to consider the bill, after which it will be forwarded to the President of Poland, who has 21 days to decide. In the most optimistic scenario, the Act could be published in the Journal of Laws at the turn of October and November. This, however, depends on potential Senate amendments, committee proceedings, and the President’s decision. As a rule, the Act provides for a 14-day vacatio legis.

Inability to Obtain CASP Authorization in Poland and Its Potential Consequences

The absence of implementing legislation already has negative implications for certain entities – particularly those with their registered office in Poland that are planning to start operations as crypto-asset service providers. Such entities are not covered by the transitional period, as they do not hold (and can no longer obtain) a VASP registration. According to a communication from the Director of the Tax Administration Chamber in Katowice, which maintains the VASP register, “as of 30 December 2024 it is no longer possible to enter new entities in the register.”

Furthermore, the continued delay in adopting the implementing act may also affect entities already active on the crypto-asset market and holding a VASP registration. In a statement issued on 2 January 2025, the KNF indicated that “applications for authorization submitted to the KNF will be left unprocessed until the adoption of the Act.” Given that the CASP authorization process is expected to take at least three months, a delay in adopting the Act could result in an inability to obtain authorization before the end of the transitional period – thereby forcing entities to suspend their activities as crypto-asset service providers.

The failure of the Polish legislator to designate the KNF as the competent authority does not suspend the obligations imposed by the MiCA Regulation. On the contrary, it is likely that entities operating without CASP authorization may become subject to intervention by the European Banking Authority (EBA) or the European Securities and Markets Authority (ESMA), which may apply certain measures provided for under MiCA in cases where national authorities fail to act. These measures may include restrictions on the marketing, distribution, or sale of crypto-assets, or limitations on the type of business activities that may be conducted.

Future Financial Penalties for Operating Without Authorization

In addition to the measures that may be imposed by ESMA or EBA, the draft Polish Crypto-Assets Market Act also provides for criminal sanctions for operating as a crypto-asset service provider without the required authorization. The proposed penalties include a fine of up to PLN 5,000,000, imprisonment for up to five years, or both. The same penalties would apply to individuals acting on behalf of, or in the interest of, a legal person or other organizational unit engaging in unauthorized activities. However, until the Act enters into force, these penalties cannot be applied. For the time being, entities active on the crypto-asset market will only be subject to potential regulatory measures taken by ESMA or EBA.

Cross-Border Provision of Services as a Potential Solution

The adverse consequences for crypto-asset service providers resulting from the delay in Polish implementation could potentially be mitigated by obtaining a CASP authorization in another EU Member State and providing services in Poland on a cross-border basis. This option – without the need to obtain authorization from the Polish authority – is provided for under Article 65 of the MiCA Regulation. However, according to the definition of the “home Member State”, in order to take advantage of this possibility, the entity would have to relocate its registered office to the Member State where it intends to apply for CASP authorization.