BTCS CSO Wojciech Kaszycki said Poland’s investigation of Zondacrypto highlights why the country must have proper cryptocurrency regulation. Without it, Poland risks falling behind in the modern economy.
Polish prosecutors allege there may be 350 million złoty (€82.5 million) in possible losses through misleading clients. Zondacrypto executive Przemysław Kral fled to Israel.
Kaszycki operated amid major Fintech trends, starting with the founding of an e-commerce firm in the 1990s. In the early 2000s, he designed treasury software systems.
When he was first introduced to cryptocurrency, Kaszycki didn’t think it would work and deemed it just another asset class. His opinion changed after digging into the supporting technology.
“With blockchain, you can finally have financial markets with a global backbone,” Kaszycki said. “Now, I believe it’s a technology that’s changing the world together with AI and some other things.”
Kaszycki compares the current environment in Poland with his experience trying to convince companies to create websites 30 years ago. They had to be convinced it was better than the Yellow Pages. Those seeing cryptocurrency as a scam are largely unfamiliar with it. Let them use it, and they’ll convert.
Many have. Kaszycki estimates twice as many Polish citizens have cryptocurrency wallets as have brokerage accounts.
Not that you would know it from the actions of Poland’s national political parties. Kaszycki said only one minority party seems to understand its utility. That has led to some strange activity that threatens to make Poland a laggard in the global economy.
Then comes the Zondacrypto news, which moved cryptocurrency from a niche industry into a national conversation. News of users losing money and access to their funds was some people’s crypto introduction. That led to pressure on those many policymakers who, while unfamiliar with crypto, now faced pressure to act.
If only they had the support of regional regulation, but Poland is the only EU country to not pass MiCA. President Karol Nawrocki has twice vetoed a cryptocurrency bill despite a June 30 deadline to have a regulation in place.
Kaszycki said that’s a problem for Poland as it risks driving business and tax revenue to other European Union countries. That’s one problem with MiCA, as it allows countries flexibility in how they implement it. Some tax, some don’t. That leaves companies to shop for the most conducive climate.
“It’s not (their) fault,” Kaszycki said. “They are born to be competitive and look for easier money. It’s a problem of regulation.
“They plan to unify everyone in the EU. Maybe, finally, we’ll have a real rule book, not just one on paper.”
How that new and improved MiCA will look is anyone’s guess today, Kaszycki said. One certainty is that it must clearly dictate who can offer services to EU citizens and how. That should include a local presence.
“The fact that you move to Dubai or somewhere else allows you to live somewhere else and maybe pay less taxes, but you will not be able to offer services to the EU,” Kaszycki said. “Sooner or later, if you become a medium or large company, you’ll be forced to open an office there anyway.”
The environment in Poland was different a decade ago. Back then, Poland was a regional leader, with many brilliant minds operating locally.
That momentum stopped when Poland’s leaders didn’t establish a proper regulatory foundation. Now, people like Kaszycki are urging them to get it right and make up for lost ground.
“There are two possibilities, either crypto will die or become mainstream,” Kaszycki said. “But for the future of the country, we cannot miss it.”