Polish crypto regulator Komisja Nadzoru Finansowego (KNF) will be given the power to block access to crypto for up to 96 hours independently.
The new regulations come as crypto firms move to the region ahead of the European Union’s Markets-in-Crypto-Assets (MiCA) bill.
KNF’s Crypto Account Blocking Authority
KNF has the authority to block crypto accounts for up to 96 hours in case of suspected criminal activity linked to the funds in the account, according to tax expert Izabela Deryło. In addition, the regulator can freeze funds for up to six months with the permission of the prosecutor’s office.
“In the event of a suspicion that a transaction may be linked to the commission of a crime, the KNF will be able to independently block the accounts of cryptocurrency holders,” Deryło said.
Crypto investors in Poland have reacted negatively to the new regulations. Some say the rules give the KNF unlimited powers.
The government and KNF said the rules conform with crypto regulations in Europe’s MiCA legislation. However, while MiCA does require crypto exchanges to report transactions regardless of the amount, it does not sanction the blocking of accounts.
Read more: What Is Markets in Crypto-Assets (MiCA)?
Poland is proving a destination of choice in Europe for crypto firms ahead of MiCA. By September 2023, it had received 13 new crypto exchange license applications, taking the number of firms in the country to at least 951.
Setting up a crypto business is relatively cheap nationwide, with a minimum registration cost of approximately $164. Exchanges may need to front more costs depending on the business they intend to do. The affordable costs offer companies a gateway into the European Union bloc before MiCA becomes effective for exchanges in December 2024.
A survey conducted by Statista in 2023 found that around 74% of Polish respondents reported owning or using cryptocurrencies. This figure may have fluctuated since then due to various factors such as market trends, regulatory changes, and public sentiment.
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