The KNF's new authority to block crypto accounts has raised concerns among Polish investors. While the government argues these rules conform with EU legislation, critics worry about the extent of the regulator's powers.
The Polish crypto regulator, Komisja Nadzoru Finansowego (KNF), will now have the authority to block access to cryptocurrency accounts for up to 96 hours independently. This new regulation aims to curb suspected criminal activities linked to cryptocurrency funds. Additionally, with the prosecutor’s office’s permission, KNF can freeze funds for up to six months.
These measures come as crypto firms are relocating to Poland ahead of the European Union’s Markets-in-Crypto-Assets (MiCA) bill. According to tax expert Izabela Deryło, the KNF’s ability to block accounts independently is a significant power, which has sparked concerns among crypto investors in Poland. Many believe that these rules grant KNF excessive authority.
While the Polish government and KNF argue that these regulations align with the European Union’s MiCA legislation, critics point out that MiCA requires reporting transactions but does not endorse account blocking. The new rules have thus ignited a debate on the balance between regulation and investor freedoms in the growing cryptocurrency market.
