Poland Crypto regulation 2023

Poland Crypto regulation 2023

In February 2017, Poland officially recognized the sale and purchase of e-currencies and its mining as one of the types of commercial activities. Therefore, the question “is mining legal or not in 2021 and 2022?” does not appear here, but the relevant activity must be registered with the authorized body. In January 2018, the Council of Ministers adopted a draft law on the regulation of BTC and other e-currencies. According to this document, crypto interchanges will be required to conduct due diligence of their clients – that is, to study in detail their business, especially sources of income. They are also entrusted with the functions of financial monitoring agents – they are needed to report any suspicious transfers.

Laws of Poland and cryptocurrency

Cryptocurrencies are becoming more and more popular and available all over the world. Many foreigners in Poland choose activities related to this relatively new instrument. However, any profit is associated with the need to calculate and pay taxes, and the situation with e-money is not always clear, for example, it can not only be sold (converted into other currencies), but also pay for goods and services.

The taxable base, that is, the amount from which the tax will be taken, is the income minus the expenses incurred associated with obtaining this income. And here the situation is less certain.

The costs of generating income from the sale of cryptocurrencies are the documented expenses incurred by the taxpayer for the buy of virtual currency, and the costs related with their implementation, for example, commissions to sales agents.

According to the official statement of the Polish tax authorities, neither the cost of computer equipment nor the cost of electricity consumption are expenses for calculating profits from digital currencies, since it is not possible to determine the exact amount of expenses for each income transaction. 

Cryptocurrency license in Poland

Cryptocurrency license and business in Poland is officially called “Polish crypto authorization”. It is about an entry in the state enrolment of business-companies that carry out crypto activities. This allows your corporation to carry out the following types of economic activity:

  • swap between virtual and fiat money;
  • exchange BTC to LTC;
  • depository services ;
  • mediation in exchange.

Advantages

  • Fast project implementation period
  • The possibility of purchasing a ready-made solution
  • There are no demands for authorized capital
  • There is no mandatory local employee

Obtaining a crypto license in Poland

Since Poland is an EU member state, both domestic rules and controls and EU directives apply to the adjustment of cryptocurrencies, especially with regard to compliance with AML/CTF provisions. To abide by with European regulatory standards, an applicant for a Poland crypto license must:

  • Open a company in Poland with a “physical” office;
  • Draw up a detailed business plan and financial forecast for 5 years;
  • Hire local staff and recruit directors with experience in the financial sector;
  • Open a bank account in one of the local banks, where the initial capital will be Deposited (upon registration, the capital must be fully paid up);
  • Develop procedures for AML / KYC, rules for control, monitoring and risk reduction.

How much does the Polish crypto license cost?

If you want to get a license for cryptocurrencies in Poland, it will be useful to know that, starting from the end of October 2021, customers must be identified if transactions exceed the amount of 1000 EUR. Prior to this, the threshold was 8,000 EUR.

Is crypto regulated in Poland?

At the end of October 2021, a new cryptocurrency regulation came into force in Poland. KNF has stated that e-money brokers must now register in order to provide legitimate services. In addition, it was believed that profits from digital assets would be taxed from the beginning of 2022. Poland has signed a declaration on the establishment of the European Blockchain Partnership (EBP).

Is crypto taxed in Poland?

Polish companies must pay the following tax rates:
Corporate income tax (CIT) – 9%, if the annual turnover does not exceed 2,000,000 euros, if the company exceeds this threshold – 19%
Personal income tax (PIT) – from 17% to 32% depending on profit and form of taxation
Value Added Tax (VAT) – base rate 23%
Tax on dividends – 19% for residents of Poland. Foreigners need to further study the tax treaty between the countries
Repatriation of income (withholding tax) – from 0% to 20%.

Is crypto trading legal in Poland?

The tax for operations with cryptocurrency is 19%. It is taken from the odds between the income from the sale, which also includes the cost of buying goods and services for a crypt, but does not include the exchange of one crypt for another, and the costs associated with the purchase. However, the costs currently include only the direct costs of acquiring virtual money and commissions.

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