President Karol Nawrocki has vetoed a bill that aimed to introduce regulation of the crypto-assets market in Poland. The bill would have aligned Polish rules with the European Union’s Markets in Crypto-Assets (MiCA) framework. The decision created a sharp political divide and renewed discussion about how Poland should approach oversight of the fast-growing sector.

The government framed the legislation as a necessary step to protect consumers, ensure transparency and support the industry’s development. Nawrocki took a different view. He said that the measures “pose a real threat to the freedoms of Poles and the stability of the state”.

Government outlines reasons for the bill

The government approved the bill in June. Its primary goal was to help Poland comply with MiCA and designate the Financial Supervision Authority (KNF) as the main body responsible for overseeing the crypto-asset market. The legislation would have required firms to submit operational information to the KNF. It also would have allowed the regulator to impose sanctions where needed and introduced criminal liability for selected crypto-related offences.

Officials argued that oversight was overdue. Data from the finance ministry indicated that 18% of Poles had experience with crypto investing. Around a fifth of that group had fallen victim to fraud or abuse, according to figures reported by the Polish Press Agency (PAP).

The ruling coalition, which ranges from left to centre-right, supported the bill in parliament. The right-wing opposition voted against it but did not have the numbers to block it. After the vote, the legislation went to the president’s desk.

Deputy finance minister Jurand Drop appealed to Nawrocki to sign the act. He said that MiCA required EU member states to designate a supervisory authority. If Poland failed to do so before 1 July 2026, crypto firms would not be able to register in Poland and would instead relocate to other EU countries. Drop said that such a shift would move fees and tax revenue abroad. He warned that customers with account problems would then need to seek help from foreign service providers.

Nawrocki vetoes the bill and lists concerns

Nawrocki rejected the legislation on Monday evening. His chancellery announced that he believed the bill “posed a real threat to the freedoms of Poles, their property and the stability of the state”.

The president cited several concerns. One of the most prominent was the claim that the law would have “allowed the government to disable the websites of cryptocurrency companies with a single click”. His office said that “the regulations regarding domain blocking are opaque and potentially open to abuse”. It argued that these provisions appeared more stringent than those in other European countries.

He also objected to the length of the legislation. He pointed to examples in the Czech Republic, Slovakia and Hungary, where similar laws contain roughly a dozen pages. Poland’s bill exceeded 100 pages. His office wrote that “overregulation is a surefire way to push companies abroad, instead of creating the conditions for them to earn and pay taxes in Poland”.

The level of regulatory fees formed another part of the president’s objection. He said that the fees had “been set at a level that prevents small businesses and startups from developing, while favouring foreign corporations and banks”, which he described as “killing the competitive market, and seriously endangering innovation”.

Presidential spokesman Rafał Leśkiewicz said that “the crypto-assets market requires regulation, but [in a way that is] reasonable, proportional, and safe for users”. He noted that “the government had two years to prepare an act consistent with the European MiCA regulation…Meanwhile, a legal mess was created”.

Political response splits sharply

Nawrocki’s move drew praise from sections of the opposition and parts of the crypto community. Sławomir Mentzen of the far-right Confederation group welcomed the decision. He claimed that the bill would have “destroyed the Polish cryptocurrency market”.

Government officials condemned the veto. Government spokesman Adam Szłapka said that “Poles [will be] the only ones in the EU left without protection; fraudsters have a free pass; and Putin is rubbing his hands”. Foreign minister Radosław Sikorski wrote that “when the bubble bursts and thousands of Poles lose their savings, at least they will know who to thank”.

Finance minister Andrzej Domański also criticised the decision. He said that “already, 20% of [crypto] clients are losing their money as a result of abuses in this market”. He stated that “we wanted to protect them, [but] the president chose chaos and takes full responsibility for his actions”.

Industry voices show mixed views

Industry opinions varied. WNP reported that many entities supported the bill because it would bring clarity and predictability. Piotr Brewiński, president of the FinTech Poland Foundation, said that “the law isn’t perfect, but we have to start somewhere”. He noted that Poland was “a year and a half behind on the regulations”.

XTB, a Warsaw-based brokerage firm, appealed to the president to sign the legislation. The firm said that failure to pass the act would “mean uncertainty and hinder investor protection as well as the development of the sector”.

Other representatives in the industry told PAP that the bill would harm the market and asked the president not to sign it.

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