Trading in cryptocurrencies a regulated activity
Investing in cryptocurrencies is not losing its popularity, which is why it has become important to regulate e-finance. Soon, those engaged in crypto-related activities will encounter new obligations.
Legal basis
The basis for the Polish regulations is Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018. It amends two others: Directive (EU) 2015/849 on the prevention of the use of the financial system for money laundering or terrorist financing and Directive 2009/138/EC and 2013/36/EU (AML Directive V).
Due to the need to implement the above provisions, the Polish legislator adopted an amendment to the AML and CFT Act of 1 March 2018. Its update means, among other things, to specify cryptocurrencies.
Trading of cryptocurrencies
Under the above amendment, the activity of virtual currencies will become a regulated activity within the meaning of the Business Law. It follows that entities conducting activity related to trading in cryptocurrencies will be required to make an entry in the relevant register kept by the minister responsible for public finance.
Conduct of activity
Along with the introduction of the obligation to make an entry in the register, there are also additional requirements. They will have to be met by anyone interested in conducting business in the use of such assets. In particular, entrepreneurs, board members, or partners (depending on the form of business) should check the applicable requirements. These include, among others, the condition of not having a criminal record for certain types of crimes, as well as a list of documented knowledge or experience concerning activities in the field of virtual currencies.
Purpose of the amendment
The new regulations are part of a global trend of covering the broader cryptocurrency industry with additional requirements and registration obligations. Perhaps the increased scrutiny will help prevent the use of cryptocurrencies for criminal activity. While at the same time guaranteeing an increased scope of protection for individual investors.