Posted on Categories changes in law

Another attempt to capture the essence of digital money

The bill to amend the Criminal Code currently being processed (Sejm print no. 3451) is generating lots of controversies. For persons involved in FinTech, the draft of the proposed new Art. 279a of the Criminal Code is particularly interesting. It is another attempt to define new forms of commission of offences on financial markets for purposes of the criminal law. This attempt once again demonstrates what a difficult task faces lawmakers.

The problem is not new. Progress in digitalisation is accompanied by dynamic growth in various types of digital assets. The law does not keep pace with this development, and consequently is unable to ensure adequate protection to participants in digital economic exchange. This makes it necessary to adapt the existing regulations to suit the realities of the new economy.

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Posted on Categories blockchain, changes in law

Clear path for trusted technologies in Liechtenstein

The Principality of Liechtenstein will become one of the first countries with its own act on trusted technologies, approved by the Liechtenstein parliament at the first reading on 6 June 2019.

As reported by local newspapers Volksblatt and Liechtensteiner Vaterland, the parliament of this small Alpine state approved a new act on trusted technologies, and Prime Minister Adrian Hasler and his team thus achieved their aim. For nearly two years the government of Liechtenstein has been working on ensuring that the country becomes a global pioneer in blockchain technologies.

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Posted on Categories changes in law, privacy/personal data protection

Is Poland’s catalogue of data processed for providing electronic services consistent with the GDPR principle of data minimisation?

On 3 April 2019 the President of Poland signed into law the GDPR Implementation Act (full name: Act Amending Certain Acts to Ensure Application of the General Data Protection Regulation). Among several issues addressed controversially in the GDPR Implementation Act are the requirement to express consent to profiling and the catalogue of types of personal data that may be processed by suppliers of online services. This catalogue is set forth in Art. 18(1) of the Electronic Services Act. The original draft of the GDPR Implementation Act provided for repeal of that section, but during the course of legislative work on the act it was decided to leave the catalogue in place. This solution may conflict with the GDPR.

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Posted on Categories changes in law, e-commerce

Ban on unjustified geo-blocking and other forms of discrimination now in force

Just before the most intensive holiday online sales period, businesses need to implement changes ensuring customers have equal access to goods and services regardless of their nationality, place of residence or place of business. From 3 December 2018, the Geo-blocking Regulation (2018/302) applies throughout the European Union.

We wrote about this proposal earlier (text only in Polish), but due to the commencement of the bans and changes to the adopted final regulation, we come back to the subject.

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Posted on Categories blockchain, changes in law

Cryptocurrency a financial instrument? A new proposal in the EU

The legal status of cryptocurrency is particularly important not only for the so-called crypto space, but also for the future of development of blockchain technology. Recent EU legislative proposals classifing “virtual currencies” as financial instruments might significantly reduce blockchain activity in Europe.

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Posted on Categories blockchain, changes in law

Taxation of income from trading in cryptocurrencies: A new approach

The Polish government is currently working on a completely new tax regime applicable to income from trading in cryptocurrencies (virtual currencies) for personal income tax and corporate income tax purposes. For PIT purposes, this income is to be taxed as income from cash capital at the rate of 19% regardless of whether the turnover is of a private nature or made in the course of business activity. For CIT purposes, the income from trading in cryptocurrencies will be classified as capital gains. These new rules would apply from 1 January 2019.

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