The Game of Freedom and Clarity: A Fundamental Study of Poland's Cryptocurrency Taxation and Regulatory System

Written by: FinTax

1 Introduction

By the end of 2025, Poland has been engaged in intense negotiations over the regulation of crypto assets. According to an official announcement from the Polish government, on December 9, 2025, the Council of Ministers approved a draft law on the crypto asset market submitted by the Minister of Finance and Economy. After the law was vetoed by the President on December 2, it was resubmitted with the same wording, leading to a legislative deadlock. This stalemate makes Poland one of the few EU countries that has not yet completed domestic legislation to implement the Markets in Crypto-Assets Regulation (MiCA). Meanwhile, EU Directive DAC8 (Directive (EU) 2026/1124) on administrative cooperation in the field of taxation officially came into force on January 1, 2026. As a formal regulation for the EU’s implementation of the OECD Crypto-Asset Reporting Framework (CARF), DAC8 aims to incorporate crypto assets into international tax transparency standards and enhance cross-border tax cooperation. The directive requires crypto asset service providers to report user transaction data to tax authorities and enables information sharing across the EU. Just as MiCA requires member states to establish domestic regulatory mechanisms, DAC8 also necessitates local legislation for transposition and implementation to ensure its reporting mechanisms are legally binding.

In the context of the global crypto industry accelerating towards clearer, more transparent, and regulated legislation, it is especially important to monitor key regulatory developments in real time. This paper provides a foundational analysis of Poland’s crypto regulation and tax system, aiming to clarify the progress in crypto asset regulation and taxation, assist market participants in understanding compliance points and potential risks, and deepen understanding of the complexities involved in macro policy design.

2 Overview of Poland’s Crypto Asset Regulation and Tax Development

2.1 Overall Framework

Poland’s crypto asset regulatory system is characterized by the core features of “EU framework-led, domestic legislation aligned.” The current key task is to promote the domestic transposition of MiCA, but legislative progress has been hindered by domestic disagreements— the government led by Prime Minister Tusk advocates for strong regulation, viewing the law as vital for national security and urging swift implementation of EU requirements; President Duda, on the other hand, vetoed the law citing the need to protect civil liberties and market innovation. The ongoing power struggle has prevented the final adoption of the MiCA transposition.

On the regulatory front, Polish authorities aim to clarify the role of the Polish Financial Supervision Authority (KNF) as the core regulator for the crypto asset market through the domestic transposition of MiCA. They seek to establish a full licensing regime for crypto asset service providers (CASPs). The scope covers crypto exchanges, custody wallet providers, token issuers, and other market participants, with AML/CFT obligations as a core regulatory requirement—mandating CASPs to implement KYC procedures, report suspicious transactions, and comply with anti-money laundering and counter-terrorism financing standards.

On the tax side, Poland has developed a differentiated tax system centered on personal income tax (PIT) and corporate income tax (CIT). It clearly defines core rules such as “crypto-to-fiat or commodity exchanges are taxable,” while “crypto-to-crypto transactions are tax-exempt.” A dedicated reporting mechanism based on PIT-38 has been established, along with detailed operational standards for cost deduction, applicable tax rates, crypto donations, and penalties. The tax system is relatively mature and operationally feasible.

2.2 Development Timeline

Before 2018, Poland lacked systematic legal regulation of crypto assets. Cryptocurrencies were not recognized as legal tender or financial instruments but only as “property rights.” The market lacked specific legislation, relying mainly on AML laws for compliance frameworks. During this period, the Ministry of Finance proposed a 1% civil law transaction tax (PCC) on crypto trading, but it faced broad controversy over potential tax burdens and property rights infringement, leading to its suspension.

In November 2018, the government submitted amendments to the Personal Income Tax Act and Corporate Income Tax Act, clarifying that “crypto-to-crypto transactions” are exempt from income tax, while exchanges involving fiat currency, goods, or services are subject to 19% income tax. These amendments took effect on January 1, 2019.

In November 2020, Poland issued a new PIT-38 form specifically for crypto-related tax reporting by residents, filling a regulatory gap and improving the personal crypto asset tax reporting mechanism.

In February 2024, the Ministry of Finance released an initial draft of the Crypto Asset Market Law, officially initiating the domestic legislative process for MiCA. The draft was open for public consultation and included core provisions on regulatory authority setup and licensing requirements for CASPs.

In August 2024, the government published an updated version of the Crypto Asset Market Law, with the transition period aligned with MiCA’s implementation moved forward from the end of 2025 to June 30, 2025, urging market participants to accelerate compliance.

In September 2025, the lower house of Parliament approved the Crypto Asset Market Law, designating KNF as the primary regulator, detailing licensing requirements for CASPs, and establishing penalties for violations. The bill was then sent to the upper house for review.

In December 2025, the President vetoed the law citing excessive regulation, threats to civil liberties, and potential suppression of market innovation. The government resubmitted the same version to Parliament, maintaining the legislative deadlock. Meanwhile, Poland completed public consultation on the DAC8 transposition legislation, emphasizing the implementation of reporting and sharing obligations under EU Directive DAC8, which takes effect on January 1, 2026.

On January 1, 2026, the EU DAC8 regulation officially entered into force, covering the reporting year 2026. Reports and automatic exchanges between member states are to be completed within nine months after the end of the reporting year (by September 30, 2027). On December 17, 2025, the Council of Ministers approved a draft transposing DAC8 into Polish law, which is now undergoing parliamentary review and publication. Although the process lags slightly behind countries like Germany and France, it is progressing steadily.

3 Poland’s Crypto Asset Regulatory System

3.1 Core Regulatory Agencies and Responsibilities

Poland explicitly designates the Polish Financial Supervision Authority (KNF) as the core regulator for the crypto asset market, responsible for comprehensive oversight throughout the entire lifecycle of crypto assets. Its main duties include regulating CASPs, overseeing AML compliance, and protecting investors. Specifically, during market entry, KNF reviews applications from CASPs, assessing governance, capital adequacy, internal controls, risk management, and AML procedures. Approved entities receive operational licenses covering activities such as trading, custody, key management, token issuance, and related advisory services. For ongoing supervision, KNF can require quarterly reports on transaction volume, customer numbers, and reserve status, and conduct regular or spot inspections. For violations like unlicensed operation or AML breaches, KNF can impose fines, restrict business activities, or refer cases to judicial authorities for criminal prosecution. Additionally, KNF promotes financial innovation and regulatory adaptation through innovation centers and non-binding opinions.

Besides KNF, the regulatory framework involves the Ministry of Finance, the tax authority (KAS), and AML-related agencies such as the General Inspector of Financial Information (GIFI). The Ministry formulates policies, leads the domestic transposition of MiCA, oversees AML/CFT enforcement, and maintains the digital asset registry. KAS handles tax reporting, collection, and compliance checks, requiring all crypto businesses to register. GIFI collaborates with KNF and KAS, supervising AML compliance, analyzing suspicious transaction reports, and enforcing penalties.

3.2 Key Policy Regulations

Poland’s current crypto regulations fall into two categories: first, those transposing EU directives like MiCA and DAC8, including the draft Crypto Asset Market Law, which clarifies regulatory authority, licensing procedures, and sanctions; second, existing domestic laws such as general financial regulation, AML/CFT laws, and tax statutes, which impose constraints and standards on crypto activities from the perspectives of capital compliance, tax reporting, and rights protection.

Specifically, the draft Crypto Asset Market Law aims to implement MiCA domestically, defining the scope of regulation to include exchanges, custody providers, token issuers, stablecoin operators, and investment advisory firms, while excluding assets like Bitcoin that lack an issuer and are considered “securities.” It establishes a full licensing regime requiring CASPs to register with KNF, submit governance, capital, and compliance documentation, and obtain licenses before operating. Unlicensed entities face administrative sanctions. The law also mandates AML obligations such as KYC, transaction record-keeping (minimum five years), and suspicious activity reporting, with quarterly reporting to KNF and KAS. Investor protection measures include high-risk warnings, restrictions on marketing to minors, disclosure of whitepapers and risks, and prohibitions on promises of guaranteed returns. The law sets up enforcement mechanisms, including licensing fees scaled by business size, fines up to 10 million PLN (~$2.8 million), and criminal penalties up to two years’ imprisonment for serious violations like unlicensed operation, falsification, or data leaks. The draft remains in legislative debate, primarily balancing regulatory strength with individual activity space.

The transposition of DAC8 involves amending laws like the “Act on Exchange of Tax Information with Other Countries” to incorporate crypto asset reporting and automatic exchange mechanisms. Crypto service providers within scope will need to identify clients’ tax residency, perform due diligence, and report user identities, tax numbers, account details, and transaction data annually. The authorities will then exchange this information with other EU countries, significantly increasing cross-border transparency and reducing anonymous trading platforms.

4 Poland’s Crypto Asset Tax System

Currently, Poland has no dedicated tax law for crypto assets. Tax treatment mainly follows existing frameworks, primarily the Personal Income Tax Act (PIT) and the Corporate Income Tax Act (CIT). Different tax rules apply depending on whether the taxpayer is an individual or a corporation, the nature of the transaction, and the business model.

4.1 Personal Income Tax

In Poland, crypto transactions are regarded as the sale of property rights in virtual currency. For individual taxpayers, clear distinctions are made between taxable and tax-exempt events, with explicit rules on tax rates and reporting. Gains from non-business holding or disposal of crypto assets are generally declared annually under PIT-38 and taxed at a flat rate of 19%. Taxable events mainly include exchanges for fiat currency, goods, or services, or debt settlement using crypto. Transactions such as purchasing crypto with PLN or EUR, transferring between personal wallets, holding crypto, or earning crypto via mining, staking, or airdrops are usually not taxable.

The taxable base is calculated as income minus deductible costs, such as acquisition costs and platform fees, reducing taxable income. Expenses like mining equipment, energy costs, financing, and costs related to crypto swaps are generally not deductible. Even if no income is realized in a given year, taxpayers can declare and carry forward acquisition costs for future deductions. Additionally, if total annual income exceeds approximately 100,000 PLN (~$24,000), a 4% solidarity tax may be triggered, increasing overall tax burden.

4.2 Corporate Income Tax

Corporate participants are subject to CIT, with similar distinctions between taxable and exempt events as individuals. The standard CIT rate is 19%, but small or startup companies with annual revenue below €2 million can benefit from a reduced rate of 9%. Tax declarations follow standard corporate procedures, requiring separate accounting for crypto-related costs and prohibiting offsetting crypto losses with other income.

4.3 Other Taxes

Regarding VAT, the Polish government does not consider cryptocurrencies as “currency units, means of payment, or electronic money,” and currently crypto transactions are not subject to VAT. Concerning the controversial civil law transaction tax (PCC), the Ministry of Finance temporarily suspended its collection in 2018. It clarified that crypto transactions before July 13, 2018, should have paid PCC, but subsequent policies have not been enacted, and the application of PCC to crypto trading remains suspended.

5 Summary and Outlook

Poland’s crypto taxation and regulation exhibit both transitional and mature features, with a clear overall framework and defined direction. On the regulatory front, Poland is advancing the domestic transposition of MiCA, despite legislative hurdles, establishing a KNF-centered multi-agency oversight structure, with full licensing and AML/CFT obligations, and aligning with EU DAC8 standards to enhance tax transparency. On the tax side, Poland has integrated crypto assets into its existing tax system, applying differentiated taxation based on participant type and transaction mode, with the main principles of tax exemption for crypto-to-crypto trades and taxation of fiat/commodity exchange gains. The tax environment remains relatively friendly and manageable.

From industry trends, compliance and transparency in the crypto sector are inevitable. As Poland gradually improves its regulatory legislation and constructs a flexible, EU-compliant regulatory and tax system, it will provide more stable operational expectations, attract high-quality crypto enterprises, and promote healthy industry development within legal boundaries. Furthermore, with the implementation of DAC8, cross-border tax cooperation in crypto trading will be further enhanced, integrating the domestic crypto market into the broader European regulatory ecosystem.