XTB Advances Spot Crypto Trading via Cyprus Approval

XTB secures Cyprus approval for spot crypto trading, bypassing Poland’s MiCA deadlock and advancing its digital asset expansion plans. XTB has secured regulatory approval in Cyprus to offer spot cryptocurrency trading, allowing the broker to advance its digital asset plans while political gridlock continues to stall similar efforts in its home market of Poland.

The Cyprus Securities and Exchange Commission (CySEC) has authorized XTB’s local entity to provide spot crypto services under the European Union’s Markets in Crypto-Assets (MiCA) regulation. The broker plans to launch the product first for clients in Cyprus and later expand to other jurisdictions once regulatory approvals are obtained.

“This step will allow us not only to enhance our offering but also fully test this new feature before the planned rollout to other jurisdictions,” said Omar Arnaout, XTB’s chief executive officer, in a statement.

XTB’s decision to proceed via Cyprus comes after nearly a year of legislative uncertainty in Poland, which remains more than 11 months behind other EU member states in implementing MiCA. Although Poland’s parliament passed a national crypto bill, President Karol Nawrocki has so far refused to sign it into law, creating a prolonged regulatory vacuum.

The standoff has featured unusual political developments, including XTB sending an open letter to the president, the president vetoing the bill, and parliament passing the same legislation again without amendments despite the head of state’s objections.

XTB Advances Spot Crypto Trading via Cyprus Approval

XTB’s interest in spot crypto trading became public in January, when the company advertised for a “Head of Crypto” role to help build a digital asset trading platform. At the time, Filip Kaczmarzyk, XTB’s Head of Trading, confirmed that spot cryptocurrencies were under consideration, although other product initiatives initially took priority.

The broker has offered cryptocurrency contracts for difference (CFDs) since 2018 but has been seeking to add direct ownership of digital assets to better compete with platforms already providing spot trading.

Poland’s draft crypto legislation has drawn sharp criticism from industry participants and opposition politicians. In November, XTB published an open letter arguing that the absence of a regulatory framework posed greater risks than the shortcomings of the proposed law, warning that Polish investors were increasingly turning to offshore platforms beyond national supervision.

“Without a local law, Polish investment firms cannot obtain the necessary licenses,” XTB said in the letter, signed by board members including Jakub Kubacki and Kaczmarzyk.

The proposed legislation, which runs to 334 pages in its Polish version, has been described by critics as one of the most restrictive in Europe. Sławomir Mentzen, leader of the opposition Konfederacja party, labeled it “the most unfriendly” crypto law on the continent, pointing to its length compared with significantly shorter frameworks in countries such as Austria and Romania.

The bill places oversight with Poland’s Financial Supervision Authority (KNF), a regulator Mentzen accused of being hostile to crypto innovation. It also includes a 0.4% tax on gross revenues, which industry representatives say could weigh heavily on operators. Mentzen has further warned that the KNF could blacklist companies without providing a right of appeal.

A Way Forward Outside Poland

Despite acknowledging regulatory concerns, XTB has argued that operating in a legal vacuum creates even greater challenges. The company has said that, under current rules, only foreign entities can legally serve Polish crypto customers, potentially depriving the state of tax revenue and domestic firms of competitiveness.

With the Cyprus authorization now in place, XTB can move ahead with its spot crypto strategy while Poland’s legislative impasse continues. The broker said it plans to maintain both crypto CFDs and spot crypto offerings as separate products once the new service launches.

For now, Cyprus provides XTB with a regulated foothold in spot crypto trading, even as questions remain about when—and in what form—Poland will finally implement the EU’s digital asset framework.

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