POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
The key difference between virtual currencies and other blockchain assets lies in their intend - ed use. Virtual currencies are mainly used as a means of exchange or store of value, whereas blockchain assets can include security tokens, utility tokens or other financial instruments with broader applications. 10.12Non-Fungible Tokens (NFTs) NFTs are not explicitly regulated under Polish or EU financial laws. They are unique digital assets stored on a blockchain, typically representing ownership of digital or physical items. However, only “true” NFTs, genuinely unique and non-interchangeable, fall outside financial regu - lations. If an NFT is not “truly unique” , it may be classified as a regular crypto-asset under MiCAR (potentially subjecting it to financial regulations). PSD2 defines the regulatory framework for open banking in Poland, requiring banks to provide TPPs access to customer accounts via secure application programming interfaces (APIs). KNF enforces compliance and most banks use Ber - lin Group API standards. Poland has also intro - duced PolishAPI, a national standard developed by the Polish Bank Association to improve API integration and compliance. Despite a strong fintech sector, challenges per - sist. Strict authentication rules complicate user experience, while API inconsistencies remain a barrier. Some banks have delayed or limited API functionality, treating open banking as a com - pliance obligation rather than an opportunity. Regulatory interventions have been necessary to enforce compliance. 11. Open Banking 11.1 Regulation of Open Banking
PSD3 is expected to address these issues, intro - ducing stricter oversight and standardised inter - faces to improve API interoperability. 11.2 Concerns Raised by Open Banking Banks and technology providers use encryption, tokenisation and strong customer authentication (SCA) to protect data in open banking. AI-driven fraud detection and transaction monitoring help ensure compliance with PSD2 and the GDPR. However, fintechs face barriers to accessing banking APIs and strict SCA rules impact user experience. Regulatory audits and industry col - laboration seek to balance security and seam - less transactions. Fraud in fintechs includes identity theft, where criminals steal personal data to access bank accounts or secure loans. Phishing scams also pose a threat, with fraudsters impersonating banks or authorities to extract sensitive infor - mation through fake emails or calls. Investment fraud remains a major risk, luring vic - tims with promises of high returns on fictitious ventures, such as real estate or foreign markets, often leading to severe financial losses. 12.2 Areas of Regulatory Focus 12. Fraud 12.1 Elements of Fraud Polish regulators are focused on authorised push payment fraud, investment scams, cryp - to fraud and identity theft. Payment providers must detect suspicious transactions and warn users. Banks and fintechs face growing pres - sure to enhance AML measures, fraud detection and transaction monitoring to improve customer protection.
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