Poland passes bill targeting crypto assets under sanctions

The proposed framework would require banks and crypto exchanges to restrict transactions involving designated individuals and entities.

Poland’s lower house of parliament, Sejm, has approved legislation establishing a national framework for freezing assets held by sanctioned individuals and entities, explicitly including cryptocurrencies. The bill, known as the Act on Restrictive Measures, passed the Sejm by 240 votes to 202 and will now proceed to the Senate for consideration.

The proposal includes crypto-assets in its definition of funds, alongside bank deposits, securities and other financial holdings. It would allow authorities to prohibit transfers, transactions and other activities involving assets belonging to individuals or entities placed on the national sanctions list.

Banks and crypto exchanges holding assets for designated customers would be required to comply with the restrictions. However, the legislation does not give authorities automatic access to the private keys controlling self-custodied wallets.

Under the proposed framework, the interior minister would issue administrative decisions adding individuals and entities to the sanctions list. Restrictions would take effect the day after publication, while affected parties could challenge the decisions in administrative courts. However, filing an appeal would not suspend enforcement until the court judgment becomes final.