Why Has Poland Failed To Advance Its Crypto Oversight Framework?
Poland’s lawmakers have failed again to overturn President Karol Nawrocki’s veto of legislation designed to strengthen oversight of the country’s cryptocurrency market, leaving the country without a dedicated MiCA supervisory framework more than a year after the European Union’s rules began applying.
The Sejm, Poland’s lower house of parliament, voted 241-198 on Friday in favor of overriding the veto, with three lawmakers abstaining. The result fell 25 votes short of the 266 votes required for a three-fifths majority.
The vote was another attempt to move forward with national crypto legislation after Nawrocki rejected the bill three times. The president has argued that the proposed framework would place excessive regulatory burdens on the industry and give authorities overly broad powers.
Nawrocki has said he supports cryptocurrency regulation but believes Poland’s approach goes beyond what is necessary. His objections have focused on compliance costs and provisions that could allow authorities to block websites connected to crypto businesses.
What Would The Rejected Law Have Changed?
The proposed legislation was intended to establish Poland’s national framework for implementing the European Union’s Markets in Crypto-Assets Regulation (MiCA). A central part of the bill was placing supervision of the crypto sector under the Polish Financial Supervision Authority (KNF).
KNF said on Friday that Poland still does not have a designated authority responsible for supervising the cryptoasset market, despite MiCA already applying across the European Union.
The lack of a national supervisory structure creates uncertainty for companies operating in Poland because regulators and businesses still lack a fully defined domestic process for authorization and oversight. Other EU countries have moved ahead with naming authorities responsible for supervising crypto service providers under MiCA.
The dispute also comes at a time when political pressure for tighter crypto oversight is increasing. The collapse of crypto exchange Zondacrypto has become a major factor in the debate, with authorities investigating allegations of fraud and money laundering linked to the platform.
Investor Takeaway
Poland’s regulatory delay creates uncertainty for crypto businesses seeking clarity under MiCA. While the dispute is political, the absence of a designated supervisor could affect licensing timelines, market access and investor confidence.
How Is The Zondacrypto Investigation Affecting The Debate?
The regulatory dispute has intensified as prosecutors investigate the collapse of Zondacrypto, one of Poland’s best-known crypto exchanges. Its Estonian operator, BB Trade Estonia, was declared bankrupt by an Estonian court in August, with the first creditors’ meeting scheduled for Sept. 17.
Prime Minister Donald Tusk has pointed to the expanding criminal investigation as a reason for stronger crypto oversight. Ahead of Friday’s parliamentary vote, Tusk disclosed excerpts from what he described as testimony from a key witness in the case.
Tusk said the witness alleged a 2 million Polish zloty ($550,000) payment arrangement involving a foundation linked to former Justice Minister Zbigniew Ziobro. In separate testimony cited by Tusk, the witness alleged that an unnamed person had promised to secure a presidential pardon if the witness was convicted.
The allegations are part of a broader investigation into suspected fraud and money laundering connected to Zondacrypto. Prosecutors are also examining links between the case and the 2022 disappearance of Sylwester Suszek, the founder of BitBay, which was later renamed Zondacrypto.
What Happens Next For Poland’s Crypto Market?
The failed veto override leaves Poland without the legislation needed to create its planned MiCA supervisory system. For crypto companies, the immediate challenge is determining how national oversight will operate while European rules are already in force.
Prosecutors estimated in April that losses connected to Zondacrypto were at least 350 million Polish zlotys ($95 million), increasing pressure on policymakers to strengthen consumer protections and regulatory controls.
However, the political disagreement is unlikely to disappear quickly. The government wants stronger oversight following the exchange investigation, while the president continues to argue that the proposed framework risks placing unnecessary restrictions on the sector.
Until lawmakers and the president reach an agreement, Poland’s crypto industry remains in an unusual position: subject to EU-wide MiCA requirements but still waiting for a fully established domestic supervisory authority.