Lawmakers from Poland’s ruling PiS party have submitted a bill aiming to outlaw cryptocurrency activities, drawing sharp criticism and mockery from opposition figures.
PiS Bill Targets Cryptocurrency Operations
Seventeen PiS lawmakers, including club leader Mariusz Błaszczak, have signed a proposed amendment to the law on combating unfair market practices. The bill, submitted to the Sejm on Monday, May 11, aims to classify cryptocurrency activities as an unfair market practice, irrespective of general legal prerequisites.
The justification for the bill states that the dynamic growth of the crypto-asset market, coupled with high transaction anonymity and limited identification of financial beneficiaries, poses significant risks to consumer safety and financial market stability.
Severe Penalties Proposed for Crypto Activities
The project authors propose prison sentences ranging from 6 months to 8 years for conducting cryptocurrency-related business. If the accumulated value from such activities is substantial, the prison sentence could range from 1 to 10 years.
Transitional provisions are included, requiring entities conducting crypto-asset activities to cease operations within two months of the law’s potential enactment and return all client funds.
Consumer Safety Cited as Motivation
Politicians argue the regulation aims to ensure consumer safety, citing the emotional and psychological elements influencing investment decisions. They contend that virtual currency markets employ social engineering tactics to encourage capital placement, making individuals seeking quick profits susceptible to manipulation and potentially losing significant savings.
The justification also notes that bank and financial institution clients are protected by law and oversight from the Financial Supervision Authority, while crypto-asset users lack such protections, relying only on internal rules.
Kaczyński’s Prior Stance and Political Fallout
Earlier, Jarosław Kaczyński expressed strong support for a complete ban on cryptocurrencies. However, he also indicated a need to review any partial legislation to ensure it does not unfairly exclude specific companies.
In mid-April, another crypto-asset bill, spearheaded by Janusz Kowalski (who recently left PiS), was submitted to the Sejm. On Monday, four PiS lawmakers withdrew their support for Kowalski’s project, leaving it without the necessary signatures.
Opposition Criticizes and Mocks PiS Proposal
Janusz Kowalski stated that a ban on cryptocurrency activities would benefit the opposition and rally young, innovation-loving voters to support Sławomir Mentzen’s Konfederacja party.
Mentzen himself mocked the PiS proposal on social media. Prime Minister Donald Tusk also commented, calling the PiS bill “stupid or drunk.”