Polish president vetoes law governing crypto-asset market

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Notes from Poland is managed by a small editorial team and is published by an independent, non-profit foundation funded by donations from our readers. We can’t do what we do without your support.

President Karol Nawrocki has vetoed a bill that would have introduced regulation of the crypto-asset market in Poland, bringing the country in line with EU rules.

The government argued that these measures were necessary to protect consumers and ensure that Poland benefits from the market. But Nawrocki, who is aligned with the opposition, says they “actually pose a real threat to the freedoms of Poles and the stability of the state.”

In June, the government approved the bill, which aimed to help Poland comply with European regulations on crypto-asset markets (MiCA).

The Polish bill would have designated the Financial Supervisory Authority (KNF) as the body responsible for overseeing the crypto-asset market.

Companies operating in the sector would be required to submit information on their activities to the KNF, which would be empowered to impose sanctions if necessary. The bill would also have introduced criminal liability for offenses related to cryptoassets.

The government argued that, apart from bringing Poland into compliance with EU rules, these measures were necessary to protect consumers. Data from the Ministry of Finance indicates that 18% of Poles have experience investing in cryptoassets and around a fifth of them have been victims of fraud or abuse, the Polish News Agency (PAP) reports.

In November, the bill received final approval in Parliament, where it was supported by the ruling coalition, which spans from the left to the center-right. The right-wing opposition voted against it, but fell short of the required majority to block it.

He was then transferred to Nawrocki, who is aligned with the opposition and has regularly exercised his veto over bills. Deputy Finance Minister Jurand Drop, who led work on the cryptoassets bill, called on Nawrocki to sign it.

He warned that the EU’s MiCA regulation requires member states to designate an authority to supervise the crypto market. If Poland does not do so by July 1, 2026, crypto companies will not be able to register in Poland and will move to other EU countries, Drop told PAP.

This would involve fees and tax revenues from services provided to Polish customers traveling abroad, the deputy minister said. And if Polish customers experience problems with their accounts, they will have to seek help from foreign service providers.

However, on Monday evening, Nawrocki’s chancellery announced that the president had decided to veto the bill, saying it “poses a real threat to the freedoms of Poles, their property and the stability of the state.”

For example, the president expressed concern that the law would have “allowed the government to disable cryptocurrency company websites with a single click.” His office argued that “regulations regarding domain blocking are opaque and potentially subject to abuse,” and stricter than in other countries.

Nawrocki also expressed concern over “the sheer size and resulting lack of transparency” of the legislation. He cited the Czech Republic, Slovakia and Hungary, which implemented regulations of no more than a dozen pages, while Poland’s bill was more than 100 pages long.

“Overregulation is a surefire way to push businesses abroad, instead of creating conditions for them to earn and pay taxes in Poland,” the president’s office wrote.

Finally, Nawrocki argued that the level of regulatory fees included in the bill had “been set at a level that prevents small businesses and startups from growing, while favoring foreign corporations and banks,” thereby “killing the competitive market and seriously endangering innovation.”

“The crypto-asset market requires regulation, but (in a way) that is reasonable, proportional and safe for users,” wrote presidential spokesperson Rafał Leśkiewicz. “The government has had two years to prepare a law in line with the European MiCA regulation… In the meantime, a legal mess has been created. »

The president’s decision was welcomed by Sławomir Mentzen, one of the leaders of the far-right opposition group Confederation (Konfederacja). Mentzen, who is a well-known crypto supporter, said the bill would have “destroyed the Polish cryptocurrency market.”

However, Nawrocki’s decision was condemned by government figures. “The Poles (will) be the only ones left unprotected in the EU; fraudsters have carte blanche; and Putin is rubbing his hands,” tweeted government spokesperson Adam Szłapka.

“When the bubble bursts and thousands of Poles lose their savings, they will at least know who to thank,” Foreign Minister Radosław Sikorski wrote.

“Already, 20% of (crypto) customers lose their money due to abuses in this market,” commented Finance Minister Andrzej Domański. “We wanted to protect them, (but) the president chose chaos and takes full responsibility for his actions.”

Last month, news service WNP reported that most entities in the Polisy crypto market supported the introduction of the bill, if only to bring more clarity and predictability.

“The law is not perfect, but we have to start somewhere,” Piotr Brewiński, president of the FinTech Poland Foundation, told WNP. “We are already a year and a half behind on regulation and we cannot afford further delays, which would put the industry in an even more difficult position.”

XTB, a Warsaw-based brokerage that offers an online trading platform, called on Nawrocki to sign the bill, warning that failure to do so “would mean uncertainty and hinder investor protection as well as the development of the sector.”

However, other industry representatives asked Nawrocki not to sign the bill, saying it would harm market development, PAP reports.

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation funded by donations from our readers. We can’t do what we do without your support.

Main image credit: Pierre Borthiry – Peiobty/Unsplash

Daniel Tilles is editor-in-chief of Notes from Poland. He has written on Polish affairs for a wide range of publications, including Foreign policy, POLITICS Europe, European Union observer And Dziennik Gazeta Prawna.