Bitcoin is receiving support from Poland’s deputy finance minister Wojciech Kowalczyk, who in a document released recently says that under the country’s existing financial regulations, the digital currency can be considered a financial instrument. The move is expected to help Bitcoin expand its reach in Poland successfully.
According to the document, it was in the reply to an inquiry from Michal Pacholski, an opposition member of Parliament for the liberal Twoj Ruch (Your Movement) party. Pacholski had asked about the legal status of Bitcoin transactions in the country and whether or not “options and futures contracts can be considered as a financial instrument.”
Pacholski is known to have pressed the Finance Ministry on the possibility of issuing options and futures contracts in the form of derivatives based on Bitcoin market indexes. There could have been huge trouble for investors as the issuances according to him would be similar to the derivatives which are based on stock market indexes.
Now the document released by Kowalczyk clears and confirms that any such issuance and instruments may be made available to Polish investors, provided they are in accordance with the country’s banking services regulations that the government of Poland sets to protect the rights of investors.
In its reply the Finance Minister said that Bitcoin fits within that legal framework and options or futures contracts which are based on the digital currency as a base instrument can be considered as derivative instruments, and as such, they can be considered as financial instruments, according to the bill on financial instruments.
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Bitcoin Still not an Officially Recognized Currency
Clarifying its stand on Bitcoin, Kowalczyk said that the cryptocurrency is not an officially recognized currency in Poland. In the policy document he makes it clear that an analysis of national regulations allows to conclude that Bitcoin is not a legally defined and universally accepted currency.
According to him, this is because it cannot be classified as either a national currency or a foreign currency – this fact has been used repeatedly by various governments. However, it’s also the unique feature in Bitcoin which is being boasted around by the supporters of the digital currency who say it cannot be manipulated by the governments.
The latest opinion from the Ministry of Finance shows that the Polish government believes in continued evolution of government policy toward digital currencies. Now, though Bitcoin can be used as a medium of exchange and financial tool, it will remain unrecognized as a legal currency by regulators.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com