Peculiarities of Obtaining a Cryptologic License in Poland

Suppose people want to open a crypto organization in the EU. In that case, they need to carefully study the rules of crypto regulation in this jurisdiction and get a crypto license in Poland. It should be said right away that this is easier to do than in many other jurisdictions, but there are several essential aspects that we want to talk about today.

Regulation of Crypto Business

The government in this country approved laws controlling crypto sites’ activities. Therefore, firms engaged in the crypto business must obtain state registration in the register of crypto-currency organizations. The process of such registration is equivalent to the issuance of a crypto permit. Previously, there was no registration process for conducting activities with virtual currency, so there was no mandatory registration of a crypto firm or getting a crypto license for currency exchange. And payment in cryptocurrency was not considered a means of payment.

Сrypto-currency transactions were considered conditionally legal because there were no requirements from the authorities aimed at crypto-currency activities. With the law signing on combating illegal financial transactions (AML), companies’ obligations in the crypto activities field have increased. An important fact is registering transactions with virtual currency, which prevents money laundering. Based on the AML Law, cryptocurrency is considered digital but has legal tender status.

This law touched on the limit on anonymous crypto transactions – they introduced restrictions related to the KYC requirement (the client must be known). And if the crypto transaction exceeds 1000 euros, then the anonymity of the transaction is prohibited (previously, it was allowed up to 15,000 euros). Cryptocurrency trading companies must use a financial security system when conducting transactions.

Inclusion of the Organization in the Registry

To conduct a crypto business legally, an organization does not need to get a license but to register in a state financial register. Thus, legalizing crypto activities is a fact of registration, not a license.

For an organization to be included in the list, the head of the company must meet certain conditions. Consider the list of services that can be provided by companies that fall under mandatory registration:

• perform interchange: cryptocurrency – fiat funds, these are firms – cryptocurrency exchangers;
• carry out the exchange of different cryptocurrencies one for another;
• offer to serve crypto accounts and crypto storages (wallets);
• acts as an intermediary (broker) between other firms for currency exchange.

It is worth noting that the country’s Ministry of Finance regulates the registry data. If a company is engaged in crypto activities without registration, a fine of PLN 100,000 is provided. If an organization was already engaged in crypto activities before they were legalized, it had to register within six months. New companies are prohibited from starting a crypto business before they are listed on the register.

Taxes

This country has pretty simple taxation rules. The advantage of this jurisdiction is that there are tax incentives for small companies. For large corporations, corporate tax is 19%, but if your company has fewer than ten employees and an annual income of fewer than 2 million euros, this percentage is reduced to 9%. It is incredibly convenient for small startups. There is also a tax on dividends. For residents of this country, this is 19%, and for non-residents, this percentage may vary depending on the country in which you live. If you need help understanding the tax system, you can seek help from our experts.

Work Permit Process

Once you have read the regulation and taxation rules in that jurisdiction and have decided what is suitable, you can begin getting a work permit. Doing this here is easier than in other jurisdictions. Once you have developed a business model and created the necessary software, you can register your organization in this jurisdiction. You can do this remotely. You must provide government authorities with complete information about the company’s owner and key employees in electronic format.

Registration for such an organization usually takes about a week, and you will receive a corresponding message. Next, you need to get PESEL – this is a unique tax number. You can apply in person or send documents by mail. You also need to prepare 2 e-signatures. Obtaining this document usually takes about a month, so be patient.While you are waiting for PESEL, you can collect the necessary documents and check how your organization complies with the requirements of state regulators.

When the preparatory stage is over, you can apply to be included in the register of crypto organizations. Regulatory authorities will carefully study your company’s activities and make a decision. This usually takes about 2 weeks. If the inspector has questions, they can send you a formal letter asking you to make changes to the papers or activities of your organization. In this case, the processing time for your application will be extended.

Basic requirements for Applicants

The government of this country sets the most lenient requirements for companies that want to get a work permit here. For them, the lack of a criminal record of the owner and specialists who occupy key positions and the level of competence is of decisive importance. You will be fine with licensing if your organization employs people with specialized education and experience in similar positions.

In addition, your organization is required to comply with KYC or AML regulations. This country is one of the few that allows anonymous transactions, but for no more than 1 thousand euros. You are required to verify all your clients and store their transactions. You cannot serve people who have previously been involved in fraud or money laundering. As you can see, if you are ready to work honestly and openly, you will not have any special problems obtaining a work permit.

AML Policy

But Poland is where more is needed to register for crypto activities. Companies need to rely on legislation to prevent illegal transactions:

• control internal crypto transactions;
• have an employee responsible for conducting crypto transactions within the law;
• check all transactions;
• predict the risks associated with crypto activities;
• regularly provide reports on the activities of the organization;
• have a program for processing and storing data;
• report suspicious crypto transactions to the appropriate services;
• systematically train employees and improve their qualifications in the field of crypto activities.

Currently, this company is a reasonably promising country for crypto business because the authorities control the activities of companies related to cryptocurrency, and all transactions are carried out within the framework of the country’s legislation.

In the End

Getting a license is mandatory if you want to work legally in this jurisdiction, but it also allows you to work legally in most European countries. At the same time, the requirements for applicants and taxes here are pretty moderate. Our experts will help you get a work permit in the shortest possible time.

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