MICA in practice: the PFSA awaits legislation before processing applications

On January 2, 2025, the The Polish Financial Supervision Authority (PFSA) published its position regarding the application of the MiCA Regulation during the transitional period outlined in the draft Cryptoasset Market Act. The publication reflects the ongoing legislative process in national law.

PFSA on MiCA and transitional provisions

From June 30, 2025, providing services related to cryptoassets will only be allowed with an PFSA authorization. This stems from the current wording of the draft Act, which introduces a transitional period until June 30, 2025. During this time, entities operating on the cryptoasset market as of December 29, 2024 (as defined by Article 3(1)(16) of MiCA) and those registered in the VASP register may operate without obtaining a MiCA-based authorization.

The draft Act provides for the possibility of extending the transitional period. This period may be extended until the permit is granted or denied, but no longer than 30 September 2025. In order to benefit from this possibility, entities must submit a complete application for authorisation before 1 May 2025. In addition, they must receive a notification from the FSC Office confirming the completeness of the submitted application. 

During the transitional period, entities must comply with the existing regulations, while MiCA provisions will only apply to their activities upon obtaining authorization or, at the latest, by September 30, 2025.

Immediate application of the TFR regulation

The FSA, referencing the European Banking Authority’s guidance, clarified that as of December 30, 2024, the Travel Rule Regulation (TFR) applies to cryptoasset service providers. This includes those registered in the virtual currency activity register, regardless of the transitional period under MiCA.

Applications will remain unprocessed

The FSA emphasized that as of December 30, 2024, it is not yet the competent authority for entities seeking admission to trade ART or EMT tokens or for cryptoasset service providers (CASPs). Consequently, applications for authorization submitted to the FSA will remain unprocessed until the enactment of the Cryptoasset Market Act.

What effect does the FSC’s decision have on the crypto market?

The FSA’s decision to delay the processing of applications until the enactment of the Cryptoasset Market Act creates significant uncertainty for the cryptoasset sector. The lack of immediate decisions hinders entities from fully aligning with MiCA, potentially impacting business development, client acquisition, and investments. Additionally, the extended waiting period could reduce the competitiveness of Polish entities in the European market.

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