5 key takeaways
- Poland is the largest economy in Central and Eastern Europe and one of the most active fintech markets in the EU – a natural entry point for US companies expanding into Europe
- Unlike the US, Poland and the EU operate a single integrated regulatory framework for fintech, data, AI and cybersecurity – MiCA, DORA, GDPR, AI Act and NIS2 all apply simultaneously
- KNF authorisation is required for payment services and crypto-asset services – the process is more demanding than US state licensing and requires a Polish legal entity
- GDPR is not optional and is materially stricter than any current US federal privacy framework – US companies routinely underestimate both the compliance burden and the enforcement risk
- The AI Act applies to any AI system placed on the EU market – including products sold from the US into Poland – regardless of where the developer is incorporated
As one of Poland’s leading lawyers advising international companies on Poland and EU market entry, I work regularly with US-based technology businesses and fintechs expanding into Europe. Poland is consistently their first – or most important – European destination. It is the largest economy in Central and Eastern Europe, with GDP exceeding €700 billion, full EU membership, and one of the fastest-growing fintech ecosystems on the continent.
However, the regulatory environment is fundamentally different from the US. Specifically, the EU operates a dense, overlapping set of regulatory frameworks – MiCA, DORA, GDPR, AI Act, NIS2, PSD2 – that apply simultaneously and interact in ways that frequently surprise US founders and in-house teams. This post explains the key regulatory considerations for US companies entering Poland, what is most commonly misunderstood, and how to structure your market entry correctly.
US Company Poland Market Entry Fintech: Why Poland and Why Now
Poland offers a compelling combination for US technology and fintech companies entering Europe. The country has approximately 400 active fintech companies, a talent pool of over 400,000 IT professionals, and strong regulatory infrastructure including the KNF Innovation Hub.Furthermore, as an EU Member State, a Polish entity provides passporting rights across the entire EU single market – meaning a licence obtained in Poland opens access to 27 countries.
Specifically, US companies choose Poland for three reasons. First, cost efficiency – engineering and legal talent is 40-60% less expensive than in Western Europe. Second, EU market access – a Polish subsidiary provides a fully regulated EU entity without the complexity of establishing in Germany, France or the Netherlands. Third, regulatory predictability – KNF has a reputation for constructive engagement with innovative business models, particularly through its Innovation Hub.
What US Companies Get Wrong About EU Regulation
Mistake 1: Treating GDPR like a US privacy law
GDPR is not comparable to any current US federal or state privacy framework. Consequently, US companies that have built their data architecture around CCPA or a sectoral framework (HIPAA, GLBA) frequently find that their data practices require substantial redesign before they can operate in Poland.
The key differences that matter most in practice:
| Feature | US approach | GDPR (EU/Poland) |
|---|---|---|
| Legal basis for processing | Opt-out generally sufficient | Requires positive legal basis for each processing purpose |
| Data subject rights | Limited, sectoral | Comprehensive – access, erasure, portability, objection |
| Privacy by design | Best practice | Mandatory |
| Cross-border data transfers | Generally permitted | Restricted – requires adequacy decision or appropriate safeguards |
| Enforcement | FTC, state AGs | National DPA (UODO in Poland) + fines up to €20M or 4% global turnover |
The most common gap: US companies transfer data between their Polish entity and US parent freely – without realising that GDPR restricts transfers of personal data outside the EEA unless specific conditions are met. Post-Schrems II, this requires either standard contractual clauses or reliance on the EU-US Data Privacy Framework.
Mistake 2: Assuming US fintech licensing maps onto EU licensing
US fintech licensing is state-by-state and activity-specific. EU licensing, by contrast, is harmonised at the EU level but enforced by national regulators. In Poland, the relevant regulator is KNF. Specifically:
- Providing payment services in Poland requires authorisation as a payment institution or electronic money institution – there is no equivalent of a money transmitter licence
- Offering crypto-asset services requires a CASP licence under MiCA – there is no equivalent of a BitLicence or state-by-state crypto registration
- Operating a lending product for consumers triggers Polish consumer credit law and, where relevant, MiFID II
Furthermore, unlike many US licensing processes, KNF authorisation requires a Polish legal entity, physical presence, a local management board, and an AML/CFT framework built to EU standards.
Mistake 3: Treating the AI Act as a future concern
The EU AI Act is in force now. Importantly, it applies to any AI system placed on the EU market – including products sold from the US into Poland by a US company with no EU establishment. Consequently, US AI companies selling to Polish or European customers are already within scope. For a detailed breakdown of what this means for AI product companies, see my post on US AI companies entering the EU.
US Company Poland Market Entry Fintech: The Regulatory Framework
Payment services – KNF licensing
If your business involves processing payments, holding customer funds, initiating transactions or providing account information services, you need KNF authorisation. The relevant licences are:
- KIP (krajowa instytucja płatnicza) – full payment institution licence, covers all PSD2 payment services, EU passporting
- EMI (instytucja pieniądza elektronicznego) – electronic money institution, covers e-money issuance plus payment services
- Small payment institution – lighter registration, no passporting, monthly volume caps
For a detailed comparison of payment licences, see EMI vs MIP — Which Payment Licence Do You Need in Poland?
Crypto-asset services – MiCA and CASP licensing
If your business involves crypto-asset services — custody, exchange, trading platform, portfolio management, advice – you need a CASP licence under MiCA. Additionally, if you offer stablecoins (e-money tokens or asset-referenced tokens), separate requirements apply. For more on MiCA licensing in Poland, see VASP vs CASP Under MiCA Poland.
AI products – EU AI Act
If you develop or deploy AI systems for EU customers, the AI Act applies. Specifically, if your AI system falls into a high-risk category – credit scoring, biometrics, employment decisions, critical infrastructure – you must comply with Chapter III obligations including conformity assessment, transparency and human oversight. For a detailed breakdown, see High-Risk AI Classification Under the EU AI Act.
Data protection – GDPR
Every US company operating in Poland must appoint a data controller, implement a privacy governance framework, conduct DPIAs for high-risk processing, and address cross-border transfer mechanisms. Furthermore, US companies with no EU establishment but offering products to Polish consumers are within GDPR’s territorial scope under Article 3(2).
Cybersecurity – DORA and NIS2
If your product serves Polish financial institutions, you may be subject to DORA as an ICT third-party service provider. Additionally, if your Polish entity operates in a NIS2-listed sector, NIS2 obligations under the amended KSC Act apply. For more on NIS2 in Poland, see the NIS2 Poland series.
Practical Steps for US Companies Entering Poland
Step 1 – Choose your legal structure Most US companies enter Poland through a spółka z ograniczoną odpowiedzialnością (sp. z o.o.) – equivalent to an LLC. This is the most common vehicle for foreign investors. Specifically, it provides limited liability, straightforward incorporation through the KRS, and the ability to hold regulated licences.
Step 2 – Determine your licensing requirements Map your product and business model against the regulatory frameworks above. Specifically, identify whether you need KNF authorisation, MiCA CASP licensing, or both – before incorporating, not after.
Step 3 – Build your GDPR framework Commission a data mapping exercise and gap analysis against GDPR requirements before your first Polish customer goes live. Additionally, address the US-EU data transfer mechanism – standard contractual clauses or EU-US Data Privacy Framework adequacy.
Step 4 – Assess AI Act obligations If you develop or deploy AI, classify your systems under the AI Act and determine whether high-risk obligations apply. Furthermore, ensure your AI vendor contracts address EU-specific requirements.
If you are a US company considering expansion into Poland or the EU and need regulatory guidance, get in touch. You can also find more on the FinTech practice area page and the AI Act practice area page.
Katarzyna Szczudlik is a Partner at Schoenherr in Warsaw and one of Poland’s leading lawyers advising international companies on Poland and EU market entry. Ranked by Chambers & Partners (FinTech) and Legal 500 EMEA. Get in touch.
