On January 17, 2025, Binance announced updates to its cryptocurrency deposit and withdrawal procedures in Poland to comply with the European Union's Markets in Crypto-Assets Regulation (MiCA), effective January 20, 2025. Users will now need to provide additional information for crypto deposits exceeding €1,000 (approximately $1,030.80) and for all withdrawals. This includes the sender's full name, country, and crypto exchange name for deposits, and similar details for withdrawals.
The MiCA framework, enacted on December 30, 2024, aims to standardize regulations for crypto asset service providers (CASPs) across the EU, enhancing consumer protection and addressing Anti-Money Laundering (AML) concerns. Under MiCA, detailed sender and recipient information is required for crypto transfers over €1,000.
In Poland, cryptocurrency activities are legally recognized, with a flat tax rate of 19% on crypto income. The government is also progressing with a draft regulatory framework, the Crypto Assets Market Act, which mandates Virtual Asset Service Providers (VASPs) to transition to the new CASP licensing system by June 30, 2025. Meanwhile, Poland is seeing a surge in decentralized finance (DeFi) activity, with a 40% year-over-year growth, positioning it as a significant player in Eastern Europe's crypto landscape.