Cryptolicense in Poland: Easyway to the EU market

DISCLAIMER: The term "cryptolicense" in this text refers to the authorization of a virtual asset service provider (VASP). The use of the term "cryptolicense" is intended solely to simplify the perception of the text by customers and visitors to the website.

Poland is known not only for its favorable regulation for cryptocurrency business, but also for its active support of innovation and development of digital technologies.

Legislative rules aimed at regulating the sphere of cryptocurrencies create a transparent environment for the operation of this market, providing a high level of confidence for investors and users. This allows those working in the field of virtual currencies to confidently expand their field of activity and provide new, innovative services. The process of obtaining a cryptolicense, which since 2021 has been regulated by the Law "On Combating Money Laundering and Terrorist Financing" (AML/CFT Act), provides for the possibility of carrying it out remotely, which greatly simplifies and speeds up the process for companies wishing to enter this sector.

According to this law, activities related to virtual currencies do not require a special permit or license, as in other European Union countries, where a lengthy licensing process is required. Instead, Poland obliges notification and registration of such activities in the Virtual Currencies Business Activity Register.

Poland is a pioneer in the recognition of cryptolicensing and offers a fully remote authorization process

Key Numbers about Cryptolicense in Poland

4 weeks

average term of obtaining VASP authorization

19%

corporate income tax (CIT) rate

€1,070

minimal contribution for share capital

from 12%

personal income tax (PIT) rate

€7,000

minimal cost of a VASP authorization

no VAT

for cryptocurrency exchange services

Legal Opinion about Cryptolicense in Poland

Ganna Voievodina

Manimama, CEO

"For startups, businesses and firms operating in the cryptocurrency sector, the Polish VASP authorization offers a secure basis for operations. Subject to regulatory requirements, this license provides access to a secure European hub of innovation. Doing business within a transparent legal system contributes to tax optimization and facilitates international expansion. Utilize the services of our legal team to gain access to the Polish crypto market. Contact us today to get your Polish cryptolicense".

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Types of Activities with a License in Poland

Exchange crypto to crypto: VASPs are authorized to facilitate the exchange of various virtual assets, including utility tokens and coins, ensuring diversified trading options.

Custodial wallet services: VASPs, through custodial wallets, offer a secure means of storing cryptocurrencies on behalf of users, with operators having the ability to open wallets while maintaining control over private keys.

Crypto transfers: VASPs are authorized to facilitate the secure transfer of cryptocurrencies from clients' wallets to designated third-party wallets, presenting an alternative to traditional fiat wire transfers.

Account statements issuing: VASPs have the right to reflect the balance and issue the account and transaction statements.

Exchange crypto to fiat and fiat to crypto: VASPs enable the conversion between cryptocurrency and fiat currencies, offering customers the flexibility to transact in multiple currencies.

Crypto processing and crypto acquiring: VASPs hold the capability to conduct the service allowing merchants to accept crypto as a payment with a consequent transfer of crypto to the merchant or conversion to fiat.

On-ramp and off-ramp services: VASPs have the wide opportunities for the business development including providing B2B services as on-ramp, off-ramp, white label products which Manimama is ready to help to launch including payment service providers connection.

Token sales: VASPs are authorized to conduct ICO offering the utility and limited-use e-money token.

Benefits of Obtaining a Cryptolicense in Poland

Well-developed financial infrastructure:
  • There are many banks and financial institutions willing to partner with cryptocurrency companies, providing a wide range of financial services, including account opening, lending and investment.
  • A well-developed network of investment funds and venture capitalists helps attract investment in crypto projects, which supports their growth and development.
  • EU membership:
  • Obtaining a cryptocurrency license in Poland opens access to the single European market.
  • EU membership facilitates cross-border transactions and cooperation with partners from other European countries, which promotes the international expansion of cryptocurrency companies.
  • Legal transparency:
  • Poland is actively working on creating clear and transparent rules to regulate the crypto market, which provides legal certainty and reduces risks for businesses.
  • Polish law adapts to changes in the crypto industry, allowing companies to stay within the law even though the nature of the market is changing rapidly.
  • Reputation and credibility:
  • Having a cryptolicense indicates that the company meets high standards of security and transparency, which increases the level of trust from customers and investors.
  • A cryptolicense in Poland helps attract investment as investors tend to trust regulated and legally operating companies, which supports business growth.
  • Start-up support and infrastructure:
  • The state has developed quite a few programs to support startups, including grants and incubators, which helps new companies get the resources they need to get off the ground.
  • Startups can expect advisory and mentoring support from various organizations, which helps them avoid common mistakes and speed up the development process.
  • Tax attractiveness:
  • Poland provides a favorable tax environment for businesses, including low tax rates for technology and finance companies.
  • There are various tax exemptions and incentives for innovative companies, allowing legal entities to reduce their tax burden and channel more resources into development.
  • Choose the Package of Services

    Advanced

    Set up of company ready to start cryptocurrency operational activity

    • Company formation in Poland
    • VASP authorization
    • Address of registration for one year
    • Obtaining Polish Trusted Profile (EPUAP)
    • Individual AML/KYC policies
    • Handling the communication with General Inspectorate of Financial Information (GIFI)
    Order now

    Basic

    Creating the company and autorization of VASP

    • Company formation in Poland
    • VASP authorization
    • Standard AML/KYC policies
    Order now

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    Step by Step Description

    Step 1. Initial setup

    • Initial project assessment
    • Gathering KYC information
    • Defining the business profile and selecting the desired company name
    • Drafting the power of attorney for client verification
    • Providing a current copy of the passport from the country of residence
    Duration: 1 week

    Step 2. Company registration

    • Preparatory stage (collection of the necessary information, e.g. priority company name, checking availability of company name, providing personal information from shareholders and director, etc.)
    • Obtaining prior consent for the use of a Polish address for a future company from a company that professionally provides a virtual Polish address
    • Creation of necessary documents for filing an application to the court that registers companies. 6 documents are created via the Polish electronic IT system S24, namely: company's articles of association, declaration of shareholders, declaration of the contribution of share capital, declaration that the company is managed by foreigners, declaration of communication, and the application itself
    • Sending the application for company registration and receiving notification of company registration (all registration is fully remote)
    Duration: 2 weeks

    Step 3. Preparing for regulatory compliance

    • Preparation of AML/KYC policies to align with the client company's cryptocurrency activities
    • Recruitment and education of a local director/AML officer for the company
    • Completion of the necessary paperwork and enrollment with the Financial Crime Investigation Unit (FCIS)
    • Submission and registration on the Virtual Currencies Business Activity Register
    Duration: 3 weeks

    Step 4. Opening a corporate account with EMI, Bank, and/or another VASP

    After VASP authorization, we can offer you the service of opening a corporate account with an EMI (Zen, PayDo, etc.) registered in the EU or another VASP (Kraken, Kuna, Whitebit, Bitstamp, Binance, etc.)

    Duration: 4 weeks

    Understanding of the Legal Requirements in Poland

    It will take 2-4 weeks from application to result

    The following state authorities act as regulators in the VASPs and сrypto sphere:

      1. The Ministry of Finance, which in relation to VASP acts in the person of the Tax Administration Office in Katowice (in Polish “Izba Administracji Skarbowej w Katowicach”). The Tax Administration Office in Katowice verifies the application for authorization as VASPs, enters companies into the VASP register, and issues confirmation certificates.

      2. General Inspector of Financial Information (in Polish “Generalny Inspektor Informacji Finansowej”). Regulates VASPs with respect to the enforcement of the AML/CFT Act.

        Thus, persons engaged in virtual currency activities must simply be registered in a special registry of crypto businesses and obtain the appropriate authorization.

          One company can apply for all four types of crypto activities. These are as follows:

          • exchange between virtual currencies and means of payment
          • exchange between virtual currencies
          • intermediation in the aforementioned exchanges
          • maintenance of accounts that allow authorized persons to use units of virtual currencies, including exchange transactions

          The application for registration of virtual currencies activities must contain for legal entities:

          • full name of the company
          • number in the register of entrepreneurs in the National Court Register, if such number is assigned
          • NIP (obligatory)
          • data of the representative (name and surname)
          • indication of services provided in the field of virtual currencies
          • certificate of inclusion in the registry - it is necessary to agree to receive a certificate confirming the company's inclusion in the crypto registry
          • proof of payment of stamp duty
          • a statement of fulfillment of the conditions required by law to carry out activities in the field of virtual currencies
          • declaration of absence of criminal record
          • qualified electronic signature, trusted profile or personal signature of the applicant

          Once an application is submitted, the regulator reviews it within 2-4 weeks. Issuing decisions and receiving licenses usually takes two months from the date of submission.

            In case of a positive result of the application review, the registrar does not notify the applicant of the company's inclusion in the VASP registry. It is necessary to check the registry independently. The National Tax Administration makes an entry in the registry within 14 days from the date of receipt of the application. Within 7 days after registration in the VASP registry, the registrar sends an electronic certificate of registration to the applicant.

              Companies that fail to register before starting their crypto activities may be fined PLN 100,000 (equivalent to €23,000).

              Requirements for Obtaining a Cryptolicense in Poland

              In order to get a VASP authorization in Poland, it is necessary to comply with the minimum share capital requirements, AML/KYC regulations and to have at least two shareholders

              Acquiring a Polish VASP authorization involves meeting certain criteria and complying with regulatory requirements. These requirements are aimed at ensuring transparency, security and compliance with virtual currencies legislation. Let's take a look at the main criteria:

              • Establishment of a limited liability company (Sp. z o.o.) in Poland with the indication that the registered office may be a virtual office
              • Presence of a minimum authorized capital of PLN 5,000 (equivalent to €1,070)
              • Presence of at least two shareholders, one of whom may act as the head of the management board and be responsible for the fulfillment of AML requirements. These persons may be foreigners
              • Board members must have at least one year of professional experience in the field of virtual assets
              • A person with a Polish cryptolicense must maintain a detailed and up-to-date overview of all customers and transactions in accordance with AML/KYC regulations

              Taxes in Poland

              Cryptocurrency exchange services are not subject to VAT

              As the modern economy continues to evolve, so do the tax implications associated with virtual currencies. With the development of the cryptocurrency industry, understanding the tax landscape is crucial for individuals involved in these transactions.

                Poland may be interested in virtual currency businesses looking for the government's favorable stance on the industry, as well as relatively low corporate taxes and a significant number of international double tax treaties.

                  Notwithstanding the fact that the government has not imposed any specific taxes on virtual currencies, companies conducting crypto activities in Poland are required to pay a number of existing taxes, which are levied depending on the specifics of a particular product or service. Currently, the following taxes are imposed in Poland:

                    Corporate Income Tax (CIT):

                    • Standard rate: 19%
                    • Taxable base: net profit after accounting for deductible expenses
                    • Filing deadlines: within 3 months after the end of the tax year
                    • Payment deadlines: monthly installments or after filing the tax return

                    Withholding Tax (WHT):

                    • Dividends: for polish residents - 19%, for non-residents depends on tax treaty, typically 20%
                    • Interest and royalties: 20% (10% for specific services like sea or air transportation)
                    • Intangible services: 20%

                    Capital Gains Tax:

                    • Treated as part of CIT: no separate capital gains tax, gains and losses from capital transactions are included in the general CIT base
                    • Dividends: generally taxed at the standard CIT rate (unless exempt under a tax treaty)
                    • Share transactions: treated as capital gains or operational income depending on the nature of the transaction

                    It is important to keep in mind the following regarding the realization of legal crypto activities within the framework of Polish taxation:

                    • Providing services for exchanging virtual currency for fiat or vice versa is not subject to VAT
                    • Income from the exchange of virtual currency into fiat is defined as capital income
                    • The difference from the exchange of virtual currency for virtual currency is not considered as income
                    • Any expenses arising from the exchange of virtual currency for virtual currency are not considered expenses

                    Frequently Asked Questions

                    • How are cryptocurrencies regulated in Poland?
                      There is no separate act in Poland that regulates virtual currencies. Consequently, it is done in accordance with the Act on Combating Money Laundering and Terrorist Financing.
                    • What are the requirements to obtain a Polish cryptolicense?
                      The main requirements include registering a company in Poland, ensuring compliance with AML/KYC requirements, having qualified personnel and adequate capital.
                    • How long does it take to register a company that will receive a cryptolicense?
                      About 2 weeks.
                    • Does a company need a physical presence in Poland to obtain a cryptolicense?
                      A company can have a registered virtual office.
                    • What documents are required to apply for a cryptolicense?
                      Key documents include the company's incorporation documents, business plan, internal AML/KYC policies and procedures, and documents confirming the qualifications of key employees.
                    • Is it a requirement to have a certain amount of capital for a cryptocurrency company?
                      Yes, a legal entity must have a minimum authorized capital of PLN 5,000 (equivalent to € 1,070).
                    • How many shareholders should a company that wants to obtain a cryptolicense have and what are the requirements for them?
                      A minimum of 2 shareholders, one of whom can act as chairman of the board and be responsible for meeting the AML requirements. These individuals can be foreigners.
                    • How long does it take to get a cryptolicense in Poland?
                      It will take 2-4 weeks from submitting the application to receiving the result. Also, everything will depend on the completeness and correctness of the submitted documents, as well as the speed of processing applications by the regulator.
                    • Do I need to comply with AML/KYC requirements?
                      Yes, a person with a crypto license must comply with strict KYC and AML requirements in order to prevent illegal financial transactions and ensure transparency of their activities.
                    • What are the benefits of having a cryptolicense in Poland?
                      The benefits include access to the single European market, increased trust from customers and investors, tax benefits, as well as government support and a developed financial infrastructure.

                    Client Feedbacks

                    "Manimama OU team offered not to spend our money and take additional burden by advising the option to get authorization on Poland for our existing VASP incorporated in another EU state. I like their business approach".

                    "Manimama OU did everything fast and without any my participation. This what I appreciate in working with them. They are doing their job while I am doing mine".

                    "Manimama OU opened a C2B account for cryptocurrency operations in 2 weeks for my Polish VASP. This was a great experience".

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