Legislative paralysis and MiCA

Legislative paralysis and MiCA: do Polish companies have to wait for a new law to offer crypto assets?

In an article published in Business Insider, our lawyers, Aleksander Orzeł, LL.B., and Mateusz Kędzior, LL.M., discuss what the lack of a law on the crypto asset market means for Polish investment firms.

The consequences of the lack of a law:

• it is not currently possible for investment firms (i.e. regulated entities) to obtain the status of crypto-asset service providers (‘CASP’)
• limited ability to compete on equal terms with foreign brokers
• Polish investors also lose out – if they want to invest in crypto assets, they cannot use the services of Polish investment firms; they must turn to foreign or unregulated entities

However, the MiCA Regulation provides for certain mechanisms that Polish brokers can use while awaiting the entry into force of the Act. Polish entrepreneurs may consider cooperating with a licensed foreign entity in a model:

• similar to an agency model (the MiCA Regulation does not provide for a specific regime for agency activities; however, they may be conducted on the basis of freedom to conduct business as long as the agent's activities do not constitute the independent provision of crypto-asset services)

This solution may allow Polish investment firms to operate now, in cooperation with entities licensed outside Poland.

More in the article available HERE.