Poland's Crypto Bill Advances in Legislature Again, Challenging Presidential Authority

Poland's Crypto Bill Advances in Legislature Again, Challenging Presidential Authority — Will Strict Regulations Prevail?

Poland’s lower house of parliament has once again passed a controversial cryptocurrency bill, reigniting a regulatory debate that President Karol Nawrocki had previously blocked. This legislative action sets the stage for another clash regarding the regulation of the digital asset market in Poland.

Key Takeaways

The Sejm approved the Crypto-Asset Market Act with 241 votes in favor.
The bill aims to align Poland’s crypto regulations with the EU’s MiCA framework.
It will increase regulatory oversight of crypto service providers under the Polish Financial Supervision Authority (KNF).
Concerns have been raised about the bill being one of the most restrictive in the EU.
President Nawrocki's stance remains uncertain as he reviews the bill again with a focus on balancing innovation and regulation.

Poland's Crypto Bill Advances in Legislature Again, Challenging Presidential Authority — Will Strict Regulations Prevail?

Poland's Crypto Bill Clears Legislature, Testing Presidential Limits

On Thursday, Poland’s lower house of parliament, known as the Sejm, passed the contentious Crypto-Asset Market Act once more, following a recent veto by President Karol Nawrocki. The vote resulted in 241 lawmakers supporting the bill, 183 opposing it, and one abstaining.

Poland's Sejm approves Crypto-Asset Market Act

This legislation, which was previously vetoed, has now been sent to the Senate for further examination.

Lawmakers Reintroduce Bill Without Amendments

Despite President Nawrocki’s earlier objections that the bill infringed on civil liberties, property rights, and legal certainty, lawmakers have chosen to reintroduce it without any modifications. The aim is to harmonize Poland's crypto regulations with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which all EU member states are required to implement by July 2026.

Currently, Poland stands out as the only EU nation that has not yet established a national framework to accompany these EU-wide regulations. The government argues that this regulatory gap has made the local market susceptible to exploitation and external influence.

The renewed vote comes after intense political tension. In December, Nawrocki had previously vetoed the same legislation after it cleared both chambers of parliament, citing concerns that it exceeded EU requirements and conferred excessively broad powers to authorities, including the ability to block crypto-related websites administratively.

At that time, lawmakers were unable to garner the three-fifths majority needed to overturn his veto, leading to a restart of the legislative process.

New Regulations Tighten Control Over Crypto Firms

The new legislation will place crypto-asset service providers under the oversight of the Polish Financial Supervision Authority (KNF). Exchanges, custodians, and issuers will need to secure licenses, meet capital and compliance standards, and follow anti-money laundering regulations.

The KNF would be empowered to impose fines of up to 10 million zlotys and pursue prison sentences of up to five years for serious offenses.

Critics from various political factions and the crypto industry have expressed concerns, stating that the proposed framework is among the most restrictive in the EU. Opponents have highlighted the lengthy average licensing timeline of around 30 months enforced by the KNF, the longest within the EU, arguing that these stringent rules could push firms to relocate to regions with less restrictive interpretations of MiCA.

President Nawrocki Faces Crucial Decision on Controversial Crypto Regulations

Market stakeholders have voiced concerns that the proposed bill could disrupt an industry serving approximately three million users in Poland. President Nawrocki, who took office in June after a narrow victory in the elections, previously resonated with industry voices, promising that “no oppressive laws” would be implemented in the digital asset sector, emphasizing the need for innovation over excessive regulation.

His office has demonstrated some openness to regulatory measures, provided they remain within EU standards. The government is suggesting that the resolution to the impasse may be on the horizon.

A spokesperson indicated that the President has recently received a confidential security briefing to gain “full knowledge” of the bill’s implications, leading to optimistic expectations in Warsaw that he may approve the law if it reaches his desk once more. Should the Senate endorse the bill without any amendments, it will then return to Nawrocki for a conclusive decision.