Poland's lower house, the Sejm, has passed the "Crypto-Asset Market Act" (Bill 1424), which now moves to the Senate for further consideration. The bill mandates that all crypto-asset service providers (CASPs), including exchanges, issuers, and custodians, must obtain a license to operate in Poland. This requirement extends to foreign-based entities as well. The legislation designates the KNF as the regulatory authority and outlines stringent application requirements, including corporate structure, capital adequacy, and AML procedures. If enacted, the bill provides a six-month transition period for compliance. Non-compliant CASPs could face fines up to 10 million Polish złoty (approximately $2.8 million) and potential imprisonment for up to two years. The bill passed with 230 votes in favor and 196 against, drawing criticism from some politicians and industry figures who view it as excessively restrictive.