Poland’s Crypto Bill Fails Again as Parliament Can’t Override Presidential Veto

Legislative Setback for Crypto Regulation

Poland's lower house of parliament failed to secure the necessary three-fifths majority to override President Karol Nawrocki's veto of the Crypto-Asset Market Act. This outcome necessitates a complete restart of the country's crypto regulatory process from the ground up. The bill, which had the support of Prime Minister Donald Tusk's government, was intended to align Poland with the European Union's Markets in Crypto-Assets (MiCA) framework and address perceived gaps in oversight. The legislation had progressed through several parliamentary stages after its introduction in June, ultimately reaching the president's desk. President Nawrocki rejected the bill last week, asserting that it posed a threat to the freedoms, property, and state stability of Poles. The failure to overcome the veto means the government has lost its most direct route to MiCA compliance.

As reported by Bloomberg, this legislative setback leaves Poland without a defined regulatory timeline at a critical juncture when other EU member states are actively preparing to implement uniform standards for crypto markets across the bloc.

Divisions Among Lawmakers and the Crypto Industry

Government officials initially presented the proposed act as a measure to enhance security and protect consumers. They argued that establishing clear regulations would aid in curbing fraud and mitigating the risks associated with crypto misuse by external actors, including those from Russia. Supporters of the bill emphasized that the current lack of regulation creates significant blind spots within Poland's financial system. However, industry groups voiced strong opposition. Several organizations contended that the draft rules were excessively stringent, warning that demanding strict licensing, imposing high compliance costs, and introducing criminal penalties for executive errors could drive startups out of Poland. Crypto firms argued that the bill failed to differentiate between small service providers and large institutions, creating a one-size-fits-all regulatory regime that would be particularly burdensome for smaller companies. Additionally, some lawmakers expressed concerns regarding the bill's broad scope and the speed at which it was developed, advocating for a more deliberate process involving wider consultation with local businesses.

Impact of the Veto on MiCA Alignment

The MiCA framework establishes the EU's comprehensive licensing and oversight structure for crypto-asset service providers, encompassing regulations on custody, transparency, reserves, and consumer protections. European Union member states have been actively updating their national laws to conform to this framework in anticipation of its enforcement. With the presidential veto upheld, Poland remains without a clear pathway to issue licenses or supervise crypto exchanges under a MiCA-compliant system. The government is now compelled to draft an entirely new bill, a process anticipated to take several months. This new proposal will need to navigate committee reviews, parliamentary votes, and presidential scrutiny once again. The ensuing delay leaves service providers operating in a regulatory grey area. Consequently, companies seeking long-term access to the broader EU market may opt to relocate portions of their operations to other jurisdictions that have already enacted domestic MiCA legislation.

Continued Crypto Adoption Amidst Regulatory Freeze

While legislative bodies engage in debates over regulatory frameworks, cryptocurrency adoption in Poland continues to experience significant growth. A recent report from Chainalysis identified Poland as one of Europe's leading crypto markets, demonstrating over 50% year-over-year growth in transaction volumes nationwide. Between July 2024 and June 2025, Poland ranked eighth in Europe in terms of the total value of cryptocurrency received. A substantial portion of this activity is driven by retail users, who are increasingly utilizing cryptocurrencies for savings and transfers, showing a notable engagement with Bitcoin. The installation of Bitcoin ATMs has also seen a marked increase. In January, Cointelegraph reported that Poland had become the world's fifth-largest hub for Bitcoin ATMs, surpassing El Salvador despite the latter's national adoption initiatives. This expansion reflects a growing interest among retail consumers and a generally favorable environment for operators, even in the absence of definitive national rules for digital asset oversight.

Future Regulatory Outlook

The Polish government must now return to the initial drafting phase to develop a new legislative proposal. This revised bill will need to effectively address political opposition and industry concerns while ensuring compliance with EU law. The forthcoming version is expected to re-examine key areas such as licensing thresholds, compliance costs, and penalties, which were the primary points of contention. Until a new law is enacted, Poland will continue to be an outlier within the EU—a nation experiencing expanding on-chain activity but lacking a comprehensive regulatory framework. The ability of lawmakers to reconcile security imperatives with industry demands will be a crucial determinant of how swiftly the next draft proposal progresses through parliament.