Poland’s President Vetoes Strict Crypto Bill, Sparks Government Controversy

Poland’s president vetoes strict crypto bill, clashes with government

Polish President Karol Nawrocki has chosen not to endorse a bill that would impose stringent regulations on the cryptocurrency market. This decision has been met with approval from the crypto community, while eliciting strong criticism from government officials.

In a statement released by the president’s press office on Monday, Nawrocki expressed concerns that the proposed legislation, known as the Crypto-Asset Market Act, would “genuinely threaten the freedoms of Poles, their property, and the stability of the state.”

Introduced in June, the bill faced significant opposition from industry advocates, including Polish politician Tomasz Mentzen, who had anticipated the president's reluctance to approve it following its parliamentary approval. While crypto supporters celebrated the veto as a positive development, many government members accused the president of selecting chaos and suggested he would bear the consequences of his decision.

Reasons Behind the Veto

One of the critical reasons for the veto was a clause that would enable authorities to block websites connected to the crypto market more easily. The president’s office stated, “Domain blocking laws are opaque and can lead to abuse.”

Additionally, the administration criticized the bill's complexity, asserting that its length reduces transparency and encourages unnecessary regulation—unlike simpler frameworks found in the Czech Republic, Slovakia, and Hungary.

Source: Press office of Polish President Karol Nawrocki (post translated by X)

Nawrocki remarked that excessive regulation could drive companies to relocate to countries like the Czech Republic, Lithuania, or Malta, rather than fostering an environment conducive to their operations and tax contributions in Poland. He also noted the significant supervisory fees included in the bill, which could discourage start-ups and favor foreign corporations and banks. “This is a reversal of logic, killing off a competitive market and posing a serious threat to innovation,” he asserted.

Critiques of the Veto

The president’s decision has ignited a strong reaction from high-ranking Polish officials, including Finance Minister Andrzej Domański and Deputy Prime Minister and Minister of Foreign Affairs Radosław Sikorski.

Domański took to X to warn that “20% of clients are already losing their money due to abuses in this market,” stating that the president has “chosen chaos” and must take full responsibility for the situation that may arise.

Potential Consequences

Sikorski expressed similar sentiments, claiming the legislation was intended to regulate the crypto sector. He warned, “When the bubble bursts and thousands of Poles lose their savings, at least they will know who to thank.”

Source: Finance Minister Andrzej Domański (posts translated by X)

In response, crypto advocates, including Polish economist Krzysztof Piech, argued that the president should not be blamed for the authorities' failure to pursue scammers. He also reminded stakeholders that the European Union's Markets in Crypto-Assets Regulation (MiCA) will offer investor protections across all EU member nations starting July 1, 2026.

Key Takeaways:

Polish President Karol Nawrocki vetoed a strict Crypto-Asset Market Act due to concerns over freedom and stability.
The bill's controversial provisions included easy website blocking and excessive regulation that could drive businesses abroad.
The veto has caused division among government officials, with some expressing concern over potential market repercussions.
Supporters argue that future EU regulations will help protect investors, making the veto a necessary step.