In the steadily evolving digital finance landscape, Poland remains among the popular destinations for crypto startups. This result has been achieved thanks to a significantly upgraded regulatory environment. It was aimed at overcoming regulatory challenges for businesses while ensuring maximum transparency at the same time. Getting a VASP license Poland is a major step on the road to profit in one of the most reputable European jurisdictions. However, starting from January 1, 2025, more complexities have appeared on the table because of the enactment of the new EU legislation.
What Is a VASP?
The abbreviation stands for Virtual Asset Service Providers. As its title implies, this is not a license by the classical definition. It is more an authorization for rendering specific types of services with virtual assets (VA), such as:
- exchanges, including with fiat currencies
- VA transfer
- safekeeping and administration of VA
- emission or sale of VA.
VASP’s first objective is to prevent cryptocurrency misuse, money laundering, and terrorism funding.
What Is New in 2025?
As of January 1, 2025, new European legislation will come into effect – the Markets in Crypto-Assets Regulation. This law envisages standardized regulations for crypto assets, their issuers, and service providers across the European Union. This will result in the need to obtain a license for Crypto Asset Service Provider – CASP license.
This is another authorization for companies dealing with crypto assets. It is issued for services associated with exchange, storage, portfolio management, and advisory operations. This license will allow European companies to offer services across the European Union on a “passport-able” basis. It resembles the EMI license in many ways.
The new law provides for a transition period for crypto asset providers. They will continue to operate until December 31, 2025, using their VASP licenses. To comply with all of the new requirements that will become effective after January 1, 2025, operators should apply for a CASP license.
These new regulations impose some obligations. However, they also open a way to operate across the European Union. Thus, if you manage to comply with the entry requirements in Poland, you will be operable in all other EU member-states.
New Requirements to Follow
If you would like to start operating in Poland, getting a CASP license instead of a VASP is possible subject to the following requirements:
1) incorporation of a separate legal entity;
2) registered office and effective management – at least 1 resident director is required;
3) implement sufficient internal protocols and risk management systems to ensure effective anti-money laundering (AML) and counter-terrorism financing (CTF) measures:
- identify customers
- monitor transactions
- steadily assess risks
- implement preventive mechanisms (operational, legal, and IT)
4) protect customer assets and data, among others, through effective data encryption, access control, as well as regular security audits
5) develop clear and transparent customer policies, including handling complaints and dealing with conflicts of interest.
Once a legal entity complies with all of these legal requirements and obtains a CASP license, it may freely operate across the EU.
New Capitalization Requirements
There are several types of CASP licenses, distinguished based on the type of transaction:
- CASP Class 1 is issued for companies that are in charge of receiving and transmitting orders as well as advising on different matters related to crypto assets. A minimum capital of €50,000 is required. This low threshold is merely because of low-risk transactions.
- CASP Class 2 is assigned to providers that carry, in addition to the operations for a Class 1 license, exchange transactions for fiat money and digital assets or even operate as trading platforms. Since these companies have a more active role in the market, they require additional capital of €125,000.
- CASP Class 3 is issued for companies that carry out, in addition to the transactions covered by Class 1 and Class 2 licenses, custody, and management operations on behalf of their clients. Since they manage clients’ funds, they bear more risks and responsibilities and need a higher amount of capital of €150,000.
Record-keeping
This is an always underestimated yet very important aspect. Based on that, Polish authorities will assess your compliance during the following operation in the market. Thus, it is essential to adhere to all of the legal requirements in these terms.
The market operators are obliged to collect and store all of the data helping to identify customers, their transactions, and the origin of funds. Clients should have the opportunity to obtain information about their transactions. This data should be provided to the regulator as requested.
At the same time, new legal rules provide sufficient flexibility. Companies are allowed to choose the format of data collection and storage they find most appropriate. Under any terms, records of transactions should be kept for at least 5 years.
Preparing the Application for the CASP License
Before you start operating in the Polish market – which actually opens the operation to the entire EU – there are lots of issues on the table:
- study the applicable regulations and highlight those attributed to your case;
- identify clearly the type of your business;
- carry out internal audits focusing on AML/CTF compliance, risk management, data protection, etc.;
- prepare necessary documents, such as business plan, shareholder and management details, description of risk management and IT infrastructure systems, financial statements, etc.;
- file the application for the CASP license.
If you are experiencing difficulties handling this matter, you can always contact professionals whose expertise and customer-centered approach will help your business navigate in the always-changing business environment. Take your chance of operating across the EU.
