On-shore VASP in Poland

Current (Registration): Poland operates a registration regime for VASPs under its AML Act. This means entities must register their activities with GIIF and comply with AML/CTF obligations. It is not a full "licensing" regime in the sense of prudential supervision (e.g., capital adequacy, operational risk, consumer protection oversight by KNF) like banks or investment firms currently face. The focus is purely on preventing money laundering and terrorist financing.

The applicant must be a Polish legal entity (e.g., Spółka z ograniczoną odpowiedzialnością - limited liability company, or Spółka akcyjna - joint-stock company).

At least one individual from the management board of the Polish legal entity must have their residence in Poland or possess a Polish citizenship.

Fit & Proper Criteria (Management/Owners):

Have no criminal record for intentional financial crimes (e.g., money laundering, terrorist financing, fraud, tax offenses).

Under the current Polish AML Act, there are NO specific minimum capital requirements solely for VASP registration. This is a significant difference from traditional financial licenses.

Future MiCA Impact: MiCA will introduce capital requirements for Crypto-Asset Service Providers (CASPs), ranging from €50,000 to €150,000 depending on the type of services provided.

Internal AML/CTF Procedures: Develop and implement robust internal anti-money laundering and counter-terrorist financing procedures, including a risk assessment specific to the business and its clients.

AML Officer: Appoint a designated individual responsible for AML/CTF compliance (AML Officer or Compliance Officer).

Customer Due Diligence (CDD): Implement procedures for identifying and verifying the identity of clients, including beneficial owners, and understanding the purpose and nature of business relationships. This involves collecting identity documents, verifying data, and screening against sanctions lists.

Ongoing Monitoring: Conduct ongoing monitoring of client relationships and transactions to detect suspicious activities.

Transaction Monitoring: Implement systems to monitor transactions for unusual patterns or thresholds.

Reporting: Report suspicious transactions and activities to GIIF.

Record-keeping: Maintain records of client identification data and transactions for at least 5 years.

Training: Provide regular AML/CTF training for relevant employees.

Regulatory Body: The register is maintained by the Minister of Finance.

Proof of knowledge and experience in the field of virtual currencies (e.g., certificate of completion of training, professional experience) is required.

Current Status: The current Polish AML Act does not explicitly mandate specific rules for the segregation of client assets for virtual currency custodians. While good practice and general commercial law principles might suggest segregation, there is no direct regulatory requirement specific to crypto custody in the current AML framework.

Requirement: Under MiCA, entities wishing to provide custody and administration of crypto-assets will need to obtain an authorization from their competent national authority (likely the Polish Financial Supervision Authority – KNF). This authorization will be passportable across the EU.

Conditions for Authorization: CASPs will need to meet stringent organizational, operational, and prudential requirements, including:

Requirement: MiCA explicitly mandates the segregation of client crypto-assets and funds. Article 67 specifies that CASPs providing custody services must:

Exchanging one virtual currency for another virtual currency (this is where Poland's rules differ from some other jurisdictions).

A flat rate of 19% on the positive difference between the revenue and tax-deductible costs.