Polish President Karol Nawrocki has declined to sign a bill imposing strict regulations on the crypto asset market, drawing praise from the crypto community and sharp criticism from the government. Nawrocki vetoed Poland’s Crypto-Asset Market Act, stating its provisions “genuinely threaten the freedoms of Poles, their property, and the stability of the state,” according to a statement by the president’s press office on Monday.
The bill, introduced in June, had drawn criticism from industry advocates such as Polish politician Tomasz Mentzen, who had anticipated the president’s refusal to sign it as it cleared parliamentary approval. Although crypto advocates welcomed the veto as a win for the market, several government officials condemned the move, claiming the president had “chosen chaos” and must bear full responsibility for the outcome.
Reasons Behind the Presidential Veto
One of the primary reasons cited for the veto was a provision that would have allowed authorities to easily block websites operating within the crypto market. The president’s office stated, “Domain blocking laws are opaque and can lead to abuse.”
Furthermore, the president’s office highlighted the bill’s considerable length and complexity, suggesting that it reduces transparency and leads to “overregulation.” This was contrasted with simpler regulatory frameworks observed in neighboring countries like the Czech Republic, Slovakia, and Hungary.
President Nawrocki expressed concern that such overregulation could drive companies to other jurisdictions, such as the Czech Republic, Lithuania, or Malta, instead of fostering an environment for them to operate and pay taxes in Poland. He also pointed to the excessive amount of supervisory fees proposed in the bill, which he believed could hinder startup activity and disproportionately favor foreign corporations and banks. “This is a reversal of logic, killing off a competitive market and a serious threat to innovation,” he stated.
Government Officials Condemn Veto, Citing Potential for Chaos
The president’s veto has elicited a strong negative reaction from prominent Polish officials, including Finance Minister Andrzej Domański and Deputy Prime Minister and Minister of Foreign Affairs Radosław Sikorski. Domański warned on X that “already now 20% of clients are losing their money as a result of abuses in this market,” accusing the president of having “chosen chaos” and of bearing full responsibility for any negative consequences.
Sikorski shared similar concerns, emphasizing that the bill was intended to regulate the crypto market. He argued on X, “When the bubble bursts and thousands of Poles lose their savings, at least they will know who to thank.”
In response, crypto advocates, including Polish economist Krzysztof Piech, countered that the president should not be held responsible for potential failures of authorities to pursue scammers. Piech also noted that the European Union’s Markets in Crypto-Assets Regulation (MiCA) is scheduled to implement investor protections across all EU member states starting July 1, 2026, suggesting an existing framework for future regulation.