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Licenses Required by Crypto Exchanges in Poland

Why Is It Important to Make the Exchanger Legal?

Some people that want to launch their own cryptocurrency exchange are struggling with the question of why make it legal. They seem to think that taking the gray route will help them avoid the massive headaches that come with legalizing their projects. On one hand, they are right in that they will not have to go through the registration process, be it the process of getting a crypto license in Poland or any other country, but they will be faced with a whole new level of trouble. On top of running afoul of any regulatory agency and avoiding all sorts of fines, they will also suffer the wrath of their investors if they are proven to be operating in a legal gray area.

In all likelihood, a project that failed to legalize its own operation will not be able to attract any investors in the first place since people are very much wary of any legal project that is operating in a gray area. This is one of the reasons why many projects that run afoul of the law can never really generate a serious amount of liquidity, which is why they cannot be considered successful. So, the biggest and the most important reason to make your exchange legal is to gain credibility as a reputable project and become successful.

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What Are the EU Requirements for Crypto Exchanges? 

Cryptocurrencies and other crypto assets are considered QFIs (qualified financial instruments) in the European Union. Holding, getting exposure to, or providing services in digital assets or cryptos is not illegal under EU legislation for banks, financing, or investing businesses. The Financial Supervisory Authority (BaFin) in Germany, the Autorité des Marchés Financiers (AMF) in France, and the Ministry of Finance in Italy are just a few of the EU member state authorities that call for exchangers to register in those nations. Exchanges may “passport” their authorizations and licenses from various authorities, enabling them to function under a uniform set of rules across the whole union.

The Polish Financial Supervision Authority (PFSA) (or Komisja Nadzoru Finansowego (KNF)) is the governing body that controls the activities of cryptocurrency exchanges in the country. Here are the main requirements sets forth by the KNF:

  • An official Polish legal entity;
  • A valid corporate address (albeit a local agent is recommended);
  • Verification of each individual’s clean criminal record;
  • Everyone taking part must have professional qualifications, such as schooling or previous work experience;
  • A detailed explanation of the business and its future offerings;
  • Cryptographic anti-money-laundering (AML) records, and CFT procedures, all in line with the EU standards;
  • Authentication and identity verification processes built to EU standards.

Why Do Most People Choose Poland to Obtain a License for a Crypto Exchange?

There exists a broad range of advantages that people get to enjoy once they set up shop in the above-mentioned country, including:

  1. Poland actively participates in the global economy. You may reach a wide audience of prospective buyers by operating within this nation;
  2. Polish cryptocurrency industry development outpaces that of other EU member states;
  3. The licensing process for crypto-trading exchanges in Poland is less onerous than in other EU countries;
  4. Poland has entered into double taxation accords with a number of nations. Foreign-owned businesses may gain a lot by establishing a presence in Poland;
  5. Poland boasts a very modest tax rate for businesses;
  6. Opening a financial account for your Polish cryptocurrency firm is possible using the facilities of any bank or EMI located in the European Economic Area.
  7. PLN 5,000 (roughly EUR 1,100) in starting money is all that is needed to get you set up;
  8. Businesses dealing in cryptocurrencies are now exempt from the rigorous oversight and audits of certain governing bodies.

What Documents Are Needed to Obtain a License for a Crypto Exchange in Poland?

In order to obtain suitable licensing and reap all the benefits of the prestigious Polish jurisdiction, a company must supply the following documentation:

  • A copy of each individual’s current, active passport;
  • Power of Attorney;
  • A detailed explanation of the company concept and authorized actions;
  • Curriculum vitae (CV) outlining the experience and education of each participant;
  • URL of the service-providing web platform;
  • Stockholders, directors, and proprietors must provide a clean record certificate from the state’s registrar of offenses that is a maximum of three months old.

Please note that the list of paperwork may change and depends on the individual circumstances surrounding the project and its participants.

Do I Need an Authorized Capital for a Crypto Company in Poland?

In Poland, a cryptocurrency firm must have a minimum authorized capital of 5,000 PLN, which is equivalent to around 1,100 EUR. The sum cannot be deposited in any digital currencies, it must be in fiat. The applicant must deposit into the official corporate account of their company. Before filing an application to register a corporation in Poland, this must be done. It is a mandatory precondition for obtaining a license.

How Long Does It Take to Obtain a License for a Crypto Exchange in Poland?

The process of creating a company can take up to 9 weeks. In most cases, it will be less, especially if you enlist the help of a company that provides company registering services. The first stage in which you gather the documents to jumpstart the process takes 1 week on average. The subsequent stage of you registering an LLC in Poland is usually somewhere between 3 to 4 weeks. Then, you are receiving the license which takes between 2 to 3 weeks.

Are There Companies That Offer Ready-Made Solutions?

The fastest possible solution to launch your company in Poland is to purchase a readymade company. Yes, there are companies, such as Legal Bison, for instance, that offer readymade solutions and it’s a great option for those who don’t want to wait.

When your business is authorized and running properly, you can immediately begin exploring the opportunities of the digital currencies industry. You may feel confident knowing that your money is being invested in firms that strictly follow all Polish rules and regulations.

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It will require around two to three weeks to amend the details in the business database if you are purchasing a pre-existing crypto firm. However, under Polish law, you are considered the organization’s owner immediately upon the closing of the deal. This indicates you can get immediately into your planned course of action and start making profits.

Conclusions

In general, if you get help, the process of setting up your business in Poland is both easy and straightforward. This will enable you to put your plans into action. The costs are not important since you’ll be able to make that money back in no time with ease.

Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
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