Running an online currency exchange? Big changes are coming your way!

As part of the legislative work on the Act on the Crypto-Assets Market, the results of the public consultations regarding the proposed amendments to the Foreign Exchange Act (FEA) have been presented. Below we outline the most significant announced changes, which will substantially reshape the online currency exchange market in Poland.

What changes have been proposed?

The draft Act on the Crypto-Assets Market introduces three key changes for entrepreneurs:

• definition of the non-cash currency exchange service in the Act – in short, the service is defined as the non-cash exchange of domestic payment funds into foreign payment funds and vice versa (proposed Article 2(1)(18c) of the FEA),
• exclusive provision of online currency exchange services by payment service providers – only entities authorized as payment service providers will be allowed to offer such services (proposed Article 3a(2) of the FEA),
• currency exchange transactions must be conducted exclusively through payment accounts – the exchange may only take place via payment accounts held by a payment service provider for the beneficiary, as defined in the Payment Services Act (proposed Article 3a(1) of the FEA).

When will the proposed changes come into force?

The planned changes are to come into force six months after the date of entry into force of the Act on the Market of Crypto Assets. The Act is still in the legislative process, but it is likely to be passed this year.

Has a transitional period been provided?

Yes, a transitional period has been introduced for entities already operating in the market (but not holding the status of a payment service provider), as follows:

• within 6 months from the entry into force of the Act on the Crypto-Assets Market, entrepreneurs will be required to obtain the status of a payment service provider,
• this requirement will be considered fulfilled if, within the aforementioned period, the entrepreneur submits an application for entry into the register of small payment institutions or applies for a license to operate as an authorized payment institution. Until the application is processed, the entrepreneur may continue operating under the existing rules.

How will the market be affected by the changes?

There is no doubt that the planned regulations will be a turning point for the approximately 4000 entrepreneurs currently involved in online currency exchange.

Not all of them will be able to meet the numerous requirements characteristic of, for example, an authorized payment institution, such as those related to the amount of capital or a structural one concerning the organisation of the company (intended, inter alia, for the management board or IT department).

Importantly, the provision of services in the field of non-cash currency exchange will be neither a currency exchange office activity within the meaning of the FEA nor a separate payment service.

Do you run an online currency exchange and are unsure whether the new regulations apply to you?

Write to us – we will explain what is changing and how to prepare. We will respond within 24 hours!