Announcements of a cryptocurrency investigation or taxation are usually met with backlash from the cryptocurrency community. While crowd psychology is difficult to predict, the government of Poland has a simple appeal for those jumping on the hysteric bandwagon- don’t panic.
No Reason for Panic
According to a report on Finance Magnates, both mainstream and local media in Poland have propagated the likes of bitcoin and other cryptocurrencies in a contrary manner. This sensationalism has made citizens increasingly believe that possessing or trading cryptocurrencies is strictly prohibited in the nation.
While the Polish Financial Supervision Authority (KNF) is running a 30-day campaign educating citizens about the risks of cryptocurrencies, it made clear that there is no legal regulation preventing citizens from doing so. According to the KNF’s website:
“Trading in crypto assets and trading venues themselves are not prohibited by law, and therefore its transactions are legal in the territory of the Republic of Poland.”
The takeaway from the government’s seemingly polarizing stance may confuse some but is in line with how governments around the world approach the nascent sector.
Governments’ are not wholly to blame for their crackdown as well; the rise of ICOs and exit-scams have alarmed authorities worldwide, and citizens still expect their rights to be protected.
Money Laundering and Terrorism the Main Concerns
The report noted that Poland’s localized attempts to regulate cryptocurrencies pertain to checking potential financing of terrorism, and anti-money laundering legislation. The details of the new Polish act, which comes into effect on July 13, 2018, specify several entities that are subject to the regulation, and are referred to as “obligated institutions.”
While the list does not explicitly mention cryptocurrencies, it considers exchanges and any other service that processes the purchasing and selling of digital assets as obligated institutions.
Campaign Explains Risks
Despite the apparent favorable view of cryptocurrency exchanges and digital assets, it is clear that ICOs remain in the strictly prohibited category. The move mainly reflects the decision made by authorities worldwide, who represent a very similar point of view.
The aforementioned 30-day campaign is reportedly a $4.85 million project. Importantly, it educates investors about the risks of investing in cryptocurrencies and the forex markets.
In addition, the campaign notes the complete lack of regulations in the space, coupled with the absence of safe-keeping services for digital assets.