Key changes in crypto regulations in Poland – draft act on crypto assets

Publication date: March 18, 2024

New obligations of issuers of asset-linked tokens and e-money-linked tokens and crypto-asset service providers

Assumptions and purpose of the draft act on crypto assets

The draft act on crypto-assets is intended to implement into national regulations Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on crypto-assets markets and amending Regulations (EU) No. 1093/2010 and (EU) No. 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (Journal of Laws EU. L. of 2023, No. 150, p. 40, as amended) (hereinafter: MiCA) specifying the principles of emission regulation and supervision, trading and providing services related to cryptocurrencies. The regulation has been in force since June 29, 2023, but will become fully applicable only in December 2024. The draft act provides for the introduction of new solutions in the area of the crypto-assets market sector, aimed at implementing the tasks arising from the MiCA regulation, in particular in the field of effective supervision and investor protection. According to the legislator, taking actions aimed at implementing the above-mentioned objectives will ensure long-term market development and security by extending supervisory competences. The Undersecretary of State of the Ministry of Finance is responsible for the draft act.

According to the information presented on the website of the Chancellery of the Prime Minister, in the assessment of the effects of the regulations and in the justification of the project, the most important provisions provided for in the Act are:

1. designating the Polish Financial Supervision Authority (hereinafter referred to as the Polish Financial Supervision Authority) as the competent authority for the application of the MiCA Regulation and introducing tools for the effective performance of supervision by the Polish Financial Supervision Authority and the implementation of the provisions of the said regulation;
2. defining the obligations of issuers of asset-linked tokens and e-money-linked tokens and crypto-asset service providers, including the obligation of these issuers to provide the Polish Financial Supervision Authority with information regarding their activities, which is subject to the supervisor’s assessment;
3. in the event of violations of the provisions of the MiCA Regulation, delegated or implementing acts, it is proposed to grant the Polish Financial Supervision Authority supervisory measures to counteract violations that may be committed by supervised entities;
4. introducing the possibility of imposing administrative sanctions by the Polish Financial Supervision Authority on offerors, issuers of tokens linked to assets or e-money tokens, persons applying for the admission of crypto assets to trading and providers of crypto asset services;
5. introducing criminal liability of supervised entities; the severity of penal measures will depend on the degree of offense and will be closely related to the type of act being criminalized (the solution is aimed at ensuring the security of trading in crypto assets, in particular customers, and protecting the state and investors);
6. determining the scope and rules of professional secrecy covering information obtained in connection with the provision of crypto-asset services; the proposed solution provides for the creation of a catalog of situations in which the disclosure of information will not constitute a breach of professional secrecy, and the group of entities at whose request this information will be disclosed will also be specified;
7. introducing the possibility of submitting declarations of will in electronic form in relation to services relating to crypto assets or their public offering; it is envisaged that such a declaration of will shall be given the same force as a declaration submitted in writing, otherwise being null and void.

Analysis of the most important provisions of the draft act on crypto assets

General Regulations

Pursuant to Art. 1 of the draft act, its scope includes the organization and supervision of bidders, applicants for admission of crypto assets to trading, issuers of tokens related to assets and e-money tokens, as well as service providers in the area of crypto assets.

Definitions of terms used in the Act are included in Art. 2 of the draft, often by referring to the relevant provisions of the MiCA regulation.

Article 3 refers to documents related to the provision of crypto-asset services or operations related to a public offering in accordance with the provisions of the MiCA Regulation and other activities performed by entities under the regulations set out in the MiCA Regulation. It is also possible to create these documents in electronic form. Documents in this form must be properly created, secured, stored and transferred. This provision also states that declarations of will contained in these electronic documents meet the requirement of written form if such form has been reserved under penalty of invalidity. The detailed method of creating, securing, storing and transmitting these documents is to be determined by the relevant minister by way of a regulation, taking into account ensuring the security of transactions and protecting the interests of customers. This provision, as noted in the justification, is based on Art. 13 of the Act of July 29, 2005 on trading in financial instruments (consolidated text: Journal of Laws of 2023, item 646, as amended).

Pursuant to Art. 4, the minister responsible for financial institutions is obliged to establish detailed criteria regarding the fulfillment by the staff referred to in Art. 68 section 5 and by natural persons referred to in Art. 81 section 7 of the MiCA Regulation, the requirements for possessing appropriate knowledge, skills, experience and competences needed to perform their duties, as well as the procedures for assessing and verifying the fulfillment of these requirements.

The expiry dates of the authorization to operate as a crypto-asset service provider are set out in Art. 5 in section 1 and section 2. Moreover, it provides for the possibility of specifying the activities that a crypto-asset service provider may undertake until the authorization expires and a possible shortening of the period for conducting business pursuant to a decision issued by the Polish Financial Supervision Authority, provided that the public interest is maintained. Paragraph 3 regulates the scope of actions that crypto asset service providers or entities whose authorization has been withdrawn may take in the event of liquidation or withdrawal of authorization, until the authorization expires or the activities cease. Pursuant to section 4, the Polish Financial Supervision Authority may additionally specify other activities apart from those mentioned in section 3 that the crypto asset service provider may undertake during this period. Paragraph 5 talks about the transfer of rights and obligations arising from contracts concluded with clients to another crypto asset service provider in the event of expiry or withdrawal of authorization. In paragraph 6 it is indicated that the existing service provider transfers documents regarding contracts concluded with customers to the new service provider. Paragraph 7 concerns the case where there has been no transfer of rights and obligations and the Polish Financial Supervision Authority has not issued a decision in this matter. Paragraph 8 refers to the situation specified in Art. 60 section 11 of the MiCA Regulation, in which the provisions of Art. 5 section 2-7 of the Act shall apply accordingly.

Article 6 of the draft regulates the obligation to keep all documentation related to services provided for a period of five years (crypto-asset service providers). This obligation applies to both suppliers operating in the country and foreign suppliers operating in the territory of the Republic of Poland. Paragraphs 3 and 4 provide the Commission with the necessary powers to carry out inspections, including the right to authorize a representative of the Polish Financial Supervision Authority to visit the headquarters and premises of crypto asset service providers and third parties that deal with storing documentation. In addition, the Polish Financial Supervision Authority is able to access the documentation of crypto asset service providers that are closely related to their activities. This provision corresponds to Art. 68 of the MiCA Regulation, further specifying activities in the context of supervision by the Commission.

Professional secrecy – processing of personal data

Article 9 introduces additional provisions in relation to Article 100, 101 and 129 of the MiCA Regulation, which specify and define professional secrecy and the group of entities obliged to maintain it. Trading in various types of financial instruments involves the need to process personal and sensitive data.

Extended, as compared to art. 9 of the draft act, catalog of entities obliged to maintain professional secrecy is specified in Art. 10. Pursuant to this provision, the obligation to maintain professional secrecy is also imposed on persons who have received information revealing the secret. Additionally, liability for possible damages resulting from unauthorized disclosure of such information and its use contrary to its intended purpose was specified.

Article 11 gives crypto-asset service providers the right to communicate to each other the information regarding customer receivables arising from the services they provide. This right covers information covered by professional secrecy to the extent necessary to protect the interests of the entitled persons against unreliable clients.

There is included the catalog of entities at whose request entities obliged to maintain professional secrecy must disclose legally protected information. The justification for the draft act emphasizes the importance of this regulation, especially in the context of violations and the needs of court proceedings. Adding intelligence and counterintelligence services to this catalog involves the risk of crypto assets being used to finance terrorism and money laundering. The catalog of entities listed in this provision is essentially analogous to Art. 149 of the Act on Trading in Financial Instruments.

Article 13 of the draft specifies situations in which making information covered by professional secrecy available to specific entities does not constitute a breach of the obligation to maintain this secrecy. The catalog mentioned in this article is closed and precisely indicates the entities to which the provision of protected information is not prohibited.

Article 14 of the draft bill imposes on crypto-asset service providers the obligation to use appropriate technical and organizational solutions to ensure the protection of professional secrecy, and the obligation to develop and implement regulations regarding the protection of the flow of information covered by this secrecy. This provision also specifies the scope of the regulations, i.e. detailed measures applied by a given supplier, the purpose of which is to prevent unauthorized access and use of information constituting professional secrecy by unauthorized persons, to protect the flow of this information between the supplier and other entities and the manner in which this information is transferred.

Information obligations

The information obligations of issuers of tokens linked to assets, issuers of e-money tokens and service providers in the field of crypto assets result directly from the provisions of the MiCA Regulation. Moreover, in accordance with Art. 94 of the MiCA Regulation, it is possible to oblige these entities to provide information and documents that are considered by the competent authority to be important for the performance of its duties. Pursuant to Art. 15 of the draft act, in accordance with the provisions of the MiCA regulation, the above-mentioned entities are obliged to provide the Polish Financial Supervision Authority with all information regarding their financial situation and events that may affect their activities related to the issuance of tokens related to assets and the issuance of e-money tokens. Additionally, section 5 specifies that the transfer of information and documents necessary to fulfill the information obligation by relevant entities takes place electronically.

Pursuant to Art. 16 section 1, the Polish Financial Supervision Authority has the right to request written or oral explanations and information from designated entities without undue delay. This provision also specifies the manner of providing the information requested by the Polish Financial Supervision Authority. The main purpose of this article is to ensure effective supervision of the Polish Financial Supervision Authority and the performance of its tasks, which, according to the legislator, is necessary to ensure trading security, detect irregularities, protect investors’ interests, identify prohibited acts and take immediate actions in response to these threats.

In the event of any doubts as to the correctness, reliability or completeness of the information contained in the financial statements or consolidated financial statements of specific entities, as well as to the correctness of bookkeeping and the confidentiality of information, in accordance with Art. 17 of the draft, the Polish Financial Supervision Authority has the right to commission an audit firm to conduct a financial audit. This right results from Art. 94 section 1 letter x of MiCA regulation.

Supervision of the crypto-asset market

The provisions contained in Chapter 5 of the discussed draft act are undoubtedly the ones causing the greatest controversy among the public and representatives of the crypto asset market. Articles 20-26 constitute a section containing general provisions relating to supervision. In art. 20, the Polish Financial Supervision Authority was granted the competences of the competent authority within the meaning of Art. 93 section 1 of the MiCA Regulation.

Article 21 authorizes the Polish Financial Supervision Authority to inspect the activities of issuers of tokens related to assets, issuers of e-money tokens, persons offering such tokens, entities applying for admission to trading of such tokens or providers of services related to crypto assets. The purpose of these inspections is to determine whether the activities of these entities comply with the provisions of the MiCA Regulation and the delegated and implementing regulations issued on its basis, as well as the analysed draft act and the implementing regulations issued on its basis. In order to inspect the activities of these entities, the provisions of Art. 26 and art. 27-36 of the Act of July 29, 2005 on capital market supervision will apply (consolidated text: Journal of Laws of 2023, item 188, as amended).

Article 22 grants the Polish Financial Supervision Authority, the Chairman of the Polish Financial Supervision Authority, an authorized representative of the Polish Financial Supervision Authority and the employees of the Polish Financial Supervision Authority office the right to access confidential information as defined in Art. 87 of the MiCA Regulation and to other information, including information covered by professional secrecy in accordance with the provisions of Art. 9 of the draft act and Art. 100 of the MiCA Regulation, if this information is held by natural persons or other entities.

Article 24 specifies that information obtained by the Polish Financial Supervision Authority in accordance with the provisions of Art. 13, art. 22 and art. 23 section 2 of the draft act and Art. 95 of the MiCA Regulation may be used only for the purpose of implementing statutory obligations related to the supervision of the crypto-asset market, subject to provisions providing otherwise.

Pursuant to the provisions of Art. 26, the Polish Financial Supervision Authority also has the right to impose a fine on the inspected entity if it prevents or hinders the inspection, including failure to fulfill its obligations or blocking activities specified in the relevant provisions of the Act on Capital Market Supervision. The maximum amount of this fine was set at PLN 20,000,000. This amount caused outrage among Polish traders on the X platform, however, the next two articles seem to be the most controversial change proposed by the Polish legislator.

Article 27 gives the Chairman of the Polish Financial Supervision Authority or his deputy the right to submit a written request to the supervised entity to block it. In the event of obtaining information suggesting that a crime has been committed in connection with a transaction or planned transaction, the Chairman of the Polish Financial Supervision Authority may request the blocking of the address of the distributed register, a crypto-asset account in the distributed register, a bank account or an account in a cooperative savings and credit union for a period not longer than 96 hours from the date indicated in request. Blocking a distributed address or account means temporarily preventing the disposal or use of blocked crypto assets. However, it is possible to make settlements in crypto assets from transactions concluded and liabilities incurred before receiving the request. The supervised entity must immediately block the address of the distributed register after receiving the request. The Financial Supervision Authority request must include the date of the request, the scope of the blocking and its duration, and be accompanied by an appropriate signature, which may be a handwritten signature, a qualified electronic signature, a trusted signature, a personal signature, an advanced electronic seal or a qualified electronic seal. The request may be delivered in printed form or via the electronic platform of public administration services. It is worth noting that blocking the address of a distributed register or account releases the supervised entity and persons acting on its behalf from disciplinary, civil or criminal liability. If it is not technologically possible to block the address of a distributed register or account, the supervised entity must take other appropriate actions to prevent the use of the crypto assets covered by the request.

Article 28 gives the prosecutor the power to issue a decision, in the event of a justified suspicion of committing an offense specified in the bill, to suspend a specific transaction or block the address of the distributed register, a crypto-asset account in the distributed register or a bank account and an account in a cooperative savings and credit union used for committing a crime. Suspension or blocking may be imposed by the Polish Financial Supervision Authority for a specified period of time, but no longer than 6 months from the receipt of the notification. Nevertheless, the National Prosecutor may decide to extend the blockade for a further specified period, but not longer than another 6 months. As Mike Satoshi rightly notes in his YouTube video, such a block can result in either a large profit or a large loss. This is due to the fact that crypto assets are characterized by rapid changes in rates. Thus, a person who has invested in a specific cryptocurrency, who does not have access to his account, may not be able to react to changes in this unpredictable market. Therefore, the prediction that many investors will decide to transfer their crypto assets to accounts operated by companies registered outside the European Union may seem correct.

In the decision regarding the suspension or blocking, the authority indicates the date of issuance, the scope, manner and duration of the suspension of the transaction or blocking of the address of the distributed register or account, justification and information on the right to file a complaint to the competent court. According to section 3, it is possible to postpone the announcement of the decision in particularly justified cases for a specific period of time necessary for the good of the case. In such a situation, the supervised entity is immediately informed about the decision. Pursuant to section 5, the suspension of the transaction or blocking shall cease to apply if no decision regarding property security or a decision regarding material evidence is issued before the expiry of their validity period. Paragraph 6 specifies that, to the extent not covered by paragraph 1-5, the provisions of the Act of June 6, 1997, Code of Criminal Procedure (consolidated text: Journal of Laws of 2024, item 37, as amended) shall apply. However, if it is technically impossible to stop a transaction or block the address of a distributed ledger or account, the entity storing and managing crypto assets on behalf of customers must take other appropriate actions to prevent transactions or the use of blocked crypto assets. Provisions of Art. 28 shall apply accordingly in the course of initiated criminal proceedings for offenses specified in Chapter 6 of this Act, when the notification received by the prosecutor on suspicion of committing a crime comes from a source other than the Polish Financial Supervision Authority (Article 29).

Article 31 implements the provisions of Article 94 section 1 letter aa of the MiCA Regulation, which requires Member States to provide appropriate authorities with the means to remove content or restrict access to web interfaces, to require hosting service providers to remove or deactivate the web interface, and to order domain registries or domain registrars to remove the full domain name. According to the proposed regulation, the Polish Financial Supervision Authority will be responsible for creating and maintaining a public database of Internet domain entities and IP addresses and their entries. Article 32 specifies that the database shall include Internet domains or IP addresses of entities operating in the field of crypto assets without the required authorization or authority, as well as Internet domains or IP addresses of service providers in the field of crypto assets who violate the provisions of the MiCA Regulation. Article 33 sets out the details of the entries, including the name of the internet domain or its IP address and the date and time of entry or deletion. Article 35 gives crypto asset service providers, hosting service providers, registry and domain registrars the right to object to the entry of an internet domain name or IP address in a database. Article 36 orders the Polish Financial Supervision Authority to remove an Internet domain or IP address from the database if there are no longer grounds for such an entry, in accordance with the provisions of Art. 32 section 2. Articles 38 and 39 state that the database is public and maintained in an IT system enabling automatic transfer of information to the IT systems of telecommunications undertakings.

Article 40 regulates matters related to fees used to cover the costs of supervision of the crypto-asset market, specifying the amount of fees for obtaining authorization for a public offering of tokens linked to assets and for operating as a service provider in the field of crypto-assets by legal entities or entrepreneurs. In addition, it regulates the fee for the approval of an information document relating to asset-linked tokens issued by a credit institution. Article 42 sets the amount of the fee that issuers of asset-linked tokens must pay. Pursuant to Art. 42 section 2, an issuer starting an activity subject to an annual fee shall pay the first fee for the year following the year in which it commenced this activity.

Article 45 authorizes the Polish Financial Supervision Authority to issue recommendations to supervised entities in the event of their failure to comply with the imposed obligations specified in Art. 30 – 32, art. 34 – 38 and art. 54 of the MiCA Regulation, as well as in the provisions of delegated or implementing acts issued on the basis of this regulation and in the provisions of this draft act.

Article 58 authorizes the Polish Financial Supervision Authority to impose measures on holders of crypto assets by requiring the closure or reduction, temporarily or permanently, of open positions in crypto assets and exposure to crypto assets. The legislator justifies such actions with the need to ensure the proper functioning of the crypto-assets market, using them only when there is a threat to this market. As indicated in the justification for the draft act, this power was introduced to enable the competent authorities of the Member States to perform appropriate actions, in accordance with the provisions of Art. 94 section 1 letter from the MiCA regulation.

Pursuant to Art. 60, the Polish Financial Supervision Authority has the power to impose administrative sanctions, acting as a body enforcing compliance with the regulations. This provision sets out fines in the amounts of PLN 5,000,000 (applicable to offerors, issuers of tokens linked to assets, e-money tokens, persons applying for admission to trading of crypto assets and service providers in the field of crypto assets) and PLN 2,500,000 (applicable to natural persons) imposed in the event of non-performance or improper performance of certain statutory obligations related to supervision.

The remaining provisions of this chapter (Article 61 et seq.) result mainly from Art. 111 of the MiCA Regulation, which allows the competent authorities to be empowered to apply appropriate administrative penalties and other administrative measures in relation to infringements specified in this provision of the Regulation.

The above-mentioned provisions constitute only a fraction of the competences granted to the Polish Financial Supervision Authority, but they are undoubtedly key changes proposed by the legislator, which have met with numerous reactions among the society associated with crypto assets. They expressed clear opposition to the changes, which they considered too harsh. Compared to the MiCA regulation, the competences granted to the Polish Financial Supervision Authority seem to significantly influence the crypto-assets market in Poland, not leaving the trader sufficient freedom to “move around” this market.

Penal provisions

Articles 74 – 83 constitute a chapter containing criminal sanctions. These provisions regulate criminal liability for committing the above-mentioned acts, specifying punitive measures. Penal measures are provided for in the form of a fine and imprisonment, with the possibility of their combined application. The acts for which the bill provides for criminal sanctions include:

• making a public offering of a crypto-asset other than tokens linked to assets or constituting e-money, or applying for the admission of such a crypto-asset to trading without preparing, reporting to the Commission or publishing an information document regarding this crypto-asset as required by the provisions of the MiCA Regulation, is subject to a fine of up to PLN 10,000,000 or a penalty imprisonment for up to 2 years, or both penalties jointly (Article 74(1));
• Whoever, acting on behalf or in the interest of a legal person or an organizational unit without legal personality, contrary to the obligation, does not change the published information document regarding crypto assets, does not submit the amended information document to the Commission or does not publish such information document shall be liable to a fine of up to PLN 1,000,000 PLN or imprisonment for up to 2 years, or both penalties jointly (Article 76);
• a person responsible for the information contained in the information document regarding tokens related to assets or in the information document regarding e-money tokens, who provides false data or conceals true data that significantly affects the content of the information, is subject to a fine of up to PLN 5,000,000 or imprisonment from 6 months to 5 years, or both penalties (Article 77(1));
• who conducts business related to the provision of crypto-assets services referred to in Art. 59 and art. 60 of the MiCA Regulation, without being authorized to do so, is subject to a fine of up to PLN 5,000,000 (Article 78(1));
• who, being obliged to maintain professional secrecy referred to in Art. 6 of this Act, discloses or uses information constituting such a secret shall be subject to a fine of up to PLN 1,000,000 or imprisonment for up to 3 years, or both (Article 79(1));
• who does not provide information or explanations, as well as does not prepare or transmit copies of documents and other information media referred to in Art. 16 section 1 of the draft act is punishable by arrest, restriction of liberty or a fine (Article 81(1));
• Whoever obstructs or prevents the Commission from carrying out an inspection aimed at determining the compliance of the activities of specific entities with the provisions of the Act and the MiCA Regulation and the delegated and implementing regulations issued on its basis shall be subject to a fine of up to PLN 500,000, restriction of liberty or imprisonment for up to 2 years (Article .83(1).

Changes in regulations and transition period

In order to properly regulate the above solutions, the legislator envisages introducing changes to the following acts:

• The Act of 6 April 1990 on the Police (consolidated text: Journal of Laws of 2024, item 145);
• The Act of July 26, 1991 on personal income tax (consolidated text: Journal of Laws of 2024, item 226, as amended);
• The Act of February 15, 1992 on corporate income tax (consolidated text: Journal of Laws of 2023, item 2805, as amended);
• The Act of 29 September 1994 on Accounting (consolidated text: Journal of Laws of 2023, item 120, as amended);
• The Act of 21 June 1996 on special forms of supervision by the minister responsible for internal affairs (consolidated text: Journal of Laws of 2024, item 309);
• The Criminal Procedure Code;
• The Act of August 29, 1997 – Banking Law (consolidated text: Journal of Laws of 2023, item 2488, as amended);
• The Act of September 9, 2000 on tax on civil law transactions (consolidated text: Journal of Laws of 2024, item 295);
• The Act of 24 August 2001 on the Military Police and Military Law Enforcement Bodies (consolidated text: Journal of Laws of 2023, item 1266, as amended);
• The Act of 24 May 2002 on the Internal Security Agency and the Intelligence Agency (consolidated text: Journal of Laws of 2023, item 1136, as amended);
• The Act of May 27, 2004 on investment funds and management of alternative investment funds (consolidated text: Journal of Laws of 2023, item 681, as amended);
• The Act of June 9, 2006 on the Central Anticorruption Bureau (consolidated text: Journal of Laws of 2024, item 184);
• The Act of 21 July 2006 on financial market supervision (consolidated text: Journal of Laws of 2024, item 135);
• The Act of 19 August 2011 on payment services (consolidated text: Journal of Laws of 2024, item 30);
• The Act of November 16, 2016 on the National Tax Administration (consolidated text: Journal of Laws of 2023, item 615, as amended);
• The Act of March 1, 2018 on counteracting money laundering and terrorism financing (consolidated text: Journal of Laws of 2023, item 1124, as amended).

Concerning the transitional provisions, the latter are listed in Chapter 8, Art. 102 – 111 of the draft act. The provisions contained in this chapter are of a temporary nature and concern the situation of entities that are already in the register, taking into account the changed conditions for entry in this register (Articles 102-103). Article 104, on the other hand, specifies situations regarding applications for entry into the register of activities related to virtual currencies that were submitted before the entry into force of the planned Act but have not yet been considered.

The draft act also proposes transitional provisions regarding the register of activities related to virtual currencies and entities entered in this register (Articles 105-106). According to the justification for the draft act, it is planned to expand the conditions for removing entities that have been entered in the register from the register. The new criteria for removal from the register are intended to make it easier for the authority maintaining the register to remove entities whose compliance with the conditions for entry in the register or compliance with the provisions of the Money Laundering Act cannot be verified. As a result, the risk associated with the current, relatively easy entry into the register will be limited, while the conditions for removing an entity from the register will be limited. Failure to respond to requests for information will become a condition for removal from the register, which, according to the legislator, will partially reduce the risk associated with the operation of entities entered in the register. Similarly, the lack of cooperation of an entity entered in the register during the inspection of compliance with the conditions of entry will be the reason for its removal from the register, which is intended to increase the effectiveness of the activities of the authority maintaining the register. As a result of the changes introduced, entities entered in the register of activities related to virtual currencies on the date of entry into force of the Act will be able to continue their operations until they obtain the permit referred to in Art. 59 section 1 letter a of the MiCA Regulation, but no longer than until December 31, 2025. However, in the event of removal of an entity from the list of entities authorized to temporarily conduct business in the field of virtual currencies, as provided for in Art. 105 of the draft act, this entity will also lose the right to conduct business in this area.

Article 109, which is a consequence of the provisions contained in Art. 105-106, determines the status of the register of activities related to virtual currencies during the transitional period. Changes to the regulations regarding the register of activities related to virtual currencies are consistent with the provisions of Art. 143 section 3 of the MiCA Regulation, according to which Member States have the possibility to decide not to apply the deadline provided for in this provision (until July 1, 2026) or to shorten it, in relation to crypto-asset service providers who provided their services before December 30, 2024, as long as the national regulatory framework is less stringent than that set out in the MiCA Regulation.

Article 110 establishes that the regulations regarding the provision of services related to crypto assets will apply from December 30, 2024. However, in accordance with Art. 111, the Act will enter into force on June 30, 2024, except for the provisions of Art. 4, which will come into force on December 30, 2024, and Art. 105 section 1 point 1, which will come into force on July 31, 2024.