Polish Regulators Back Self-Regulation For Blockchain

Authorities in Poland have today adopted proposals that would allow the blockchain industry in the country to self-regulate.

Adopted on March 29 by the Polish Ministry for Digital Affairs, the best-practice proposals have been designed to nurture the industry and encourage innovation in a supportive regulatory environment.

The proposals dealt with a number of areas of best practice for blockchain companies, ranging from legal structure and transparency to customer service, security and technology.

The best-practice proposals follow on from recommendations from academics and representatives of the industry, including professor Krzysztof Piech of Lazarski University, Konrad Zacharzewski, PhD of Nicolaus Copernicus University, and Lech Wilczynski, the CEO at InPay.

The proposals have also drawn on consultation efforts with Bitstar.pl, Bit Market and Fintech Poland, among others, and represent a concerted effort from Polish authorities to involve key stakeholders in shaping the regulatory environment.

The proposal document comes as part of a wider move toward digitization in Poland, as it follows similar moves in other countries to shift to more efficient technologies and processes.

The document also aims to increase trust in the blockchain in Poland, as well as raising awareness of investment risk, following the high-profile collapse and subsequent investigation into the ill-fated Polish exchange Bitcurex.

Wilczynski said that by building in trust-building mechanisms into the code of best practice, the industry could be better equipped to handle technical and developmental challenges in future.

“The idea behind the code is to try to reduce the risk of such a collapse by identifying the best practices for the existing, and, above all, new exchanges that might not be aware of certain risks.”

Among the trust-building measures to make it into the proposals are a limit on system maintenance time to 48 hours, as well as calls for greater communication about planned service interruptions and other events.

It is hoped that the policy will allow sufficient freedom for startups working within Poland’s fintech space to develop and grow, while creating a best-practice structure that startups themselves can use to ensure they are in step with the views of would-be regulators.