POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
based and on-demand solutions, improving efficiency and customer experience. Regtech and Compliance Automation Regtech solutions help financial institutions meet changing legal requirements through automation, machine learning and blockchain verification. These tools streamline AML, KYC and risk management, reducing costs and enhancing compliance. Blockchain-Based Financial Solutions Blockchain is increasingly used in transaction secu - rity, smart contracts and decentralised finance (DeFi). Digital asset platforms support cross-border trans - actions, asset tokenisation and transparent record- keeping, reducing reliance on intermediaries. 2.2 Regulatory Regime Poland’s fintech industry operates within a regula - tory framework shaped by both national legislation and EU regulations. Key regulatory bodies include the Polish Financial Supervision Authority ( Komisja Nadzoru Finansowego or KNF), which oversees bank - ing, lending, insurance and investment activities, and the Office of Competition and Consumer Protec - tion ( Urzad Ochrony Konkurencji i Konsumentow or UOKiK), which ensures consumer protection in finan - cial services. A key challenge in Poland remains the balance between EU regulations and local implementation. Additionally, Poland’s implementation of EU direc - tives is often characterised by gold-plating, leading to stricter local requirements compared to minimum EU standards, which can increase compliance burdens for fintech firms. This is especially true in crypto, where national author - ities have yet to fully integrate MiCA into domestic law. This creates regulatory uncertainty for blockchain- based businesses operating in the country. This regu - latory uncertainty has been further compounded by the lack of political and institutional consensus on the final shape of the national crypto-assets framework, as evidenced by the presidential veto of the crypto- assets bill adopted by the Polish parliament.
The regulatory regime applicable to the fintech indus - try varies according to particular verticals. 2.3 Compensation Models The compensation models employed by market par - ticipants to charge customers differ according to their regulatory status, the services they provide and their customer type. Different verticals must also comply with various regulatory requirements, including disclo - sure obligations. The two most commonly used com - pensation models are: the commission-based model and the fee-based model. Generally, regulated participants (eg, banks or pay - ment institutions) are subject to various disclosure regimes. This applies to specific pre-contractual and ongoing information requirements. Obligations are stricter if the service recipient is a consumer. This is as a result of EU consumer protection laws (eg, the Consumer Credit Directive or the Distance Marketing of Consumer Financial Services Directive) which have been implemented into the Polish legal framework. 2.4 Variations Between the Regulation of Fintech and Legacy Players Traditional financial institutions and fintech companies must comply with financial regulations if their activi - ties are within a regulated scope. However, traditional banks face stricter requirements under Basel III and Solvency II, and broader capital and risk rules. Fintech firms often navigate regulatory uncertainty due to innovative services that may not fit existing frame - works. The Polish authorities address this through the Innovation Hub and sandbox environments, offering guidance and supervised testing with reduced compli - ance burdens. Some fintech models exploit regulatory gaps to avoid licensing, particularly in crypto, DeFi and alterna - tive payments. While fostering innovation, this raises consumer-protection and financial-stability concerns. Regulators are assessing these models, with potential future legislation expanding oversight. 2.5 Regulatory Sandbox In 2019, KNF developed an Innovation Hub Pro - gramme to allow fintech companies to test new solu -
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