Cryptocurrency in the Polish reality

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The idea of cryptocurrency has no nationality, so the phenomenon of these digital coins quickly became global. They seem to be especially popular in the USA and Western Europe, as well as in Asia, Africa, South America and Central Europe. Poland also seems to have been swept by the cryptographic current, as it entered the top 15 most crypto-engaged countries in 2018. But is there any sense in investing into cryptocurrencies in the Polish reality? Bearing in mind the complexities of the law in the case of cryptocurrencies, it’s not that easy to answer that question.

Legal or illegal? The Polish approach to cryptocurrencies

Cryptocurrencies are a relatively new market, so we don’t have any international consensus concerning their legal status as of yet. That is why the decisions of their legality and regulating their use are made by the governments of individual countries.

In the case of Poland, the situation seems to be unclear, as both NBP and KNF issued a statement some time ago, trying to discourage people from investing in e-coins. The main reasons that were listed in the statement were “instability” and “the high risk of fraud”.  But independent cryptocurrency trade not only is not illegal, but straight up recommended and endorsed by various economy experts. Moreover, not additional payments or special regulations were introduced, which makes crypto trade not only possible, but relatively easy to account for in a tax return.

Cryptocurrency clearance

Cryptocurrency trading, although it’s legal, cannot be considered as conducting business activity. In the fiscal context it simply means you only have to pay taxes for it once a year and not monthly. While filling out the PIT-38, cryptocurrencies belong in the “financial capital” category, and are taxed at 19 per cent of the basis. The basis is calculated by subtracting the cost of obtaining from the yearly revenue, which is a pretty straightforward process.

The sole process of buying and selling e-coins is currently qualified as “transfer of property laws” according to the Polish law. Because of this they are taxed at just 1% of the transaction value. It is also important to mention that the exchange of one cryptocurrency for another is not subject to tax. For example, exchanging Bitcoin or Ethereum for TRON won’t be taxed. In Poland you only have to account for fiat-crypto and crypto-fiat transactions.

Polish cryptocurrencies

There were as many as three attempts an creating a Polish altcoin:

PolCoin (PLC):

It was based entirely on the Bitcoin algorithm, it was created at the beginning of 2014. After a few ups and downs many changes were introduced to the faulty algorithm and currently there are shops which accept Polcoin payments. It’s hard to call it a success, however, as PLC seems to be practically nonexistent outside of Poland.

PLN Coin (PLNc):

It was created a few months after Polcoin, and seemed to be much more promising. The creators described their project as fully independent and transparent, they also had a strong presence in the internet, actively promoting their altcoin. However, some time later these anonymous creators cut their ties to this project and nowadays it’s hard to find any reliable information about PLNc.

PolishCoin (PPC):

An ambitious project, also founded in 2014, which was meant to be a Polish product for the international market. Apparently though enthusiastic announcements were all that came out of this project. Unfortunately it’s nearly impossible to obtain any information about the topic, and the project website redirects the user to a Chinese site concerning a completely different topic.

Fortunately, the history of crypto in Poland isn’t just a series of mishaps, as Poles can boast about the Golem platform, which was created by mostly Polish developers. Golem is a supercomputer, based on the Ethereum system, which serves to “borrow” computing power from other computers, which create a network. The platform also uses a token by the same name, known as GNT. Golem is a dynamically developing platform, which can be used in many ways.

But Golem is not the only source of Polish pride. Poland is also known worldwide for highly qualified, creative, and efficient developers, who work on cryptocurrencies as well as in the general IT. Poles can also boast about their very open and active cryptocurrency community. In Cracow alone crypto-related events happen nearly every week. Thanks to this, Poland can deliver not only great experts, but also experience and mutual support.

To invest or not to invest?

Despite the surface-level aversion and warnings issued by the government, which recommend being very careful while dealing with crypto, it definitely is worth it to invest in them. Cryptocurrencies are a rapidly developing market, which is becoming an increasingly more important part of the mainstream. Being a part of the cryptocurrency community can simply pay off. Even if it won’t bring you an incredible amount of financial profit, becoming proficient in the technology, nomenclature, and usage can be a huge advantage. Especially if we consider the fact that despite appearances, Poland is one of the leaders in the fintech business. So it wouldn’t be surprising if it also became a leader in implementing blockchain technology and blockchain-based cryptocurrencies. So yes, independent cryptocurrency trade and investing in e-coins definitely makes sense.

Poland may not be known for its own cryptocurrency, but it doesn’t mean this country is irrelevant on the global crypto market. Many Polish developer and experts are highly valued as they actively take part in developing various e-coin projects. The Polish openness for new financial technologies, on the other hand, makes this country an undoubtedly fertile ground for the development of the cryptocurrency market. That’s why it’s good to take interest in this technology and maybe even try out the cryptocurrency trading for yourself.