While the crypto market in Poland is still largely unregulated, the landscape is evolving, and entrepreneurs in this sector are facing growing obligations. The registration of cryptocurrency companies is overseen by the Ministry of Finance of Poland, and this registry was activated on November 1, 2021. This article provides crucial insights into licensing, regulations, and taxation for cryptocurrency activities in Poland.
Registration and Licensing Requirements
The Polish government has established a regulatory framework that places cryptocurrency companies under the supervision of the Tax Administration Chamber. Companies offering the following services must adhere to these requirements:
- Exchange of virtual currencies for fiat money (cryptocurrency exchangers, crypto-currency exchanges).
- Exchange virtual currencies for other virtual currencies.
- Providing and maintaining accounts for virtual currencies (cryptocurrency wallets).
- Virtual currency exchange services (brokerage services).
Companies that were already operating in the virtual currency space in Poland before this date were granted an additional 6 months to adapt to the new requirements and undergo the licensing procedure.
Steps in the Licensing Process
Obtaining a cryptocurrency license in Poland involves several key steps:
- Registering a Polish company with a physical office: Non-residents can establish closed and open companies with limited liability, SP z o.o, and SA.
- Opening a bank account and depositing the authorized capital: At the time of registration, the entire capital must be paid.
- Recruiting staff and directors with financial expertise and education.
- Preparing a comprehensive business plan covering several years in advance: Documentation on technical and software tools used for exchange operations must also be provided.
- Developing AML/KYC compliance policies, internal registers, and control regulations.
Preparation and filing of documents for the registration of the company in Poland:
- Preparation of documents for registration remotely.
- Payment of government fees related to the registration of a legal entity.
- Preparation of primary declarations for the Inland Revenue Service and the registry of beneficiaries.
- Legal address and mailbox rental for 1 year.
- Obtaining the Polish tax number PESEL, which is required for the electronic application via the ePUAP government service platform.
Application for a license and registration of the company in the register of organizations working in the field of cryptocurrency:
- Preparation of documents for inclusion in the register of organizations working in the field of cryptocurrency.
- Payment of government fees.
- Conducting an AML procedure in Polish.
- The deadline for entering the Polish cryptocurrency company into the register is typically 14 days from the director's statement via ePUAP. This period may be extended in case of questions or missing documents.
Taxation of Crypto Activities
Poland has established standard tax rates as follows:
- Corporate Income Tax (CIT) - 19%
- Value Added Tax (VAT) - 23%
- Withholding Tax (WHT) - 19%-20%
- Social Security Contributions (SSC) - 20.08%
Currently, the Tax on Civil Law Transactions isn't levied on cryptocurrency transactions.
Poland holds over 90 international agreements on the elimination of double taxation. This allows businesses to benefit from preferential tax rates or tax exemptions. To take advantage of these agreements, companies must provide a certificate of residence proving the location of the taxpayer's seat for tax purposes.
Why should companies consider registering in Poland?
Expanding operations across the EU: Poland opens the gateway to a vast market of crypto enthusiasts across the European Union. By establishing a presence there, company will gain a strategic foothold to extend operations and seize exciting growth opportunities.
Tapping into a wider market and reaching new customers: Poland, with its vibrant crypto community, provides an exceptional environment for crypto businesses. With a passionate and growing base of crypto admirers, the potential to connect with new customers and expand user base is simply unparalleled.
Gaining a competitive edge in the crypto industry: Poland's progressive stance on cryptocurrencies positions it as a highly attractive jurisdiction for crypto businesses. By securing a VASP license, the entity will gain a crucial advantage, setting itself apart from the competition and establishing itself as a trusted player in the thriving EU crypto market.
Conclusion
Gaining a competitive edge in the crypto industry: Poland's progressive stance on cryptocurrencies positions it as a highly attractive jurisdiction for crypto businesses. By securing a VASP license, the entity will gain a crucial advantage, setting itself apart from the competition and establishing itself as a trusted player in the thriving EU crypto market. Feel free to reach out to us at any time to explore our services:
