Polish parliament again fails to override presidential veto

Why has Poland failed to advance its cryptocurrency regulatory framework?

Polish lawmakers have once again failed to overturn President Karol Nawrocki's veto of legislation aimed at strengthening the regulation of the country's cryptocurrency markets, leaving the country still lacking a dedicated MiCA regulatory framework more than a year after the EU's Cryptographic Asset Markets Regulation (MiCA) came into effect. On Friday, Poland's House of Representatives voted 241 to 198, with 3 abstentions to overturn the veto, but the result was 25 votes short of the required three-fifths majority (266 votes). This is another attempt to move forward with national cryptocurrency legislation after Navotsky rejected the bill three times.

The President believes that the proposed framework would place an excessive regulatory burden on the industry and give authorities too broad powers. Navocki said he supports cryptocurrency regulation, but believes Poland's approach goes beyond what is necessary. His objections focused on compliance costs and terms that could allow authorities to block websites related to cryptocurrency businesses.

What changes would the defeated law have brought?

The proposed legislation aims to establish a national framework for Poland to implement the EU Cryptographic Asset Markets Regulation (MiCA). The core part of the bill is to place regulatory powers of the cryptocurrency industry under the Polish Financial Supervisory Authority (KNF). The KNF said on Friday that although MiCA has been applied across the EU, Poland has yet to designate a body responsible for overseeing the crypto asset market. The lack of a national-level regulatory structure creates uncertainty for companies operating in Poland, as regulators and companies still lack fully clear domestic processes for authorization and supervision.

Other EU countries have moved to designate bodies responsible for supervising encryption service providers under MiCA. The controversy also comes amid growing political pressure to strengthen regulation of cryptocurrencies. The collapse of cryptocurrency exchange Zondacrypto has become a major factor in the debate, and authorities are investigating allegations of fraud and money laundering related to the platform.

Investor Revelation

Poland's regulatory delays have created uncertainty for cryptocurrency companies seeking clear guidance under the MiCA framework. Although the controversy is political in nature, the lack of a designated regulator could affect licensing timelines, market access and investor confidence.

How did Zondacrypto's survey affect the debate?

The regulatory controversy has intensified as prosecutors launch an investigation into the collapse of Zondacrypto, one of Poland's most prominent cryptocurrency exchanges. Its Estonia operator BB Trade Estonia was declared bankrupt by an Estonia court in August, and the first creditor meeting is scheduled for September 17. Prime Minister Donald Tusk has cited expanding criminal investigations as a reason for tightening cryptocurrency regulation. Ahead of Friday's parliamentary vote, Tusk disclosed excerpts of what he called the testimony of key witnesses in the case. Tusk said the witness allegations involved a payment arrangement of 2 million zlotys (about $550,000) from a foundation linked to former Justice Minister Zbigniew Ziobro. In another testimony cited by Tusk, witnesses accused an unnamed person of promising to ensure a presidential pardon if the witness was convicted.

The allegations are part of a broader investigation into suspected fraud and money laundering related to Zondacrypto. Prosecutors are also reviewing links between the case and the 2022 disappearance of BitBay founder Sylwester Suszek, which later changed its name to Zondacrypto.

What is the next step for the Polish cryptocurrency market?

The failure to override means Poland lacks the legislation needed to create the planned MiCA regulatory system. For cryptocurrency companies, the top priority is to determine how national regulation will work if European rules are already in effect. Prosecutors estimated in April that losses related to Zondacrypto were at least 350 million zlotys (about $95 million), increasing pressure on policymakers to strengthen consumer protection and regulatory controls. However, political differences are unlikely to dissipate quickly. The government wants to tighten regulation after the exchange investigation, and the president continues to argue that the proposed framework could create unnecessary restrictions on the department. Before lawmakers and the president reached an agreement, Poland's cryptocurrency industry was in a special situation: bound by EU-wide MiCA requirements, but still waiting to establish a full domestic regulatory agency.