President Nawrocki's Objections to the Crypto-Asset Market Act
Polish President Karol Nawrocki has vetoed a bill intended to introduce strict rules for the country’s crypto industry, stating that the legislation “genuinely threaten[s] the freedoms of Poles, their property, and the stability of the state.” The president’s office confirmed on Monday that he would not sign the Crypto-Asset Market Act, despite its approval by parliament. This act was designed to bring Poland into alignment with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which is set to take effect across the bloc on July 1, 2026.
However, President Nawrocki argued that the bill significantly exceeded the requirements of MiCA. He pointed to its considerable length—over 100 pages, in contrast to the dozen pages in similar legislation in the Czech Republic, Slovakia, and Hungary—and expressed concern that its complexity would be detrimental to smaller firms. His most significant objection was to a clause that would empower authorities to block crypto-related websites. His office stated, “Domain blocking laws are opaque and can lead to abuse.” Nawrocki further elaborated that “overregulation is an easy way to drive companies to the Czech Republic, Lithuania or Malta, rather than create conditions for them to operate and pay taxes in Poland.” The president also criticized the proposed high supervisory fees, contending that they would favor foreign banks and large corporations, thereby excluding startups. He characterized this as “a reversal of logic, killing off a competitive market and a serious threat to innovation.”
Investor Takeaway
The presidential veto currently prevents Poland from aligning with MiCA, prolonging a period of regulatory uncertainty for local cryptocurrency exchanges and service providers. This situation may lead companies to postpone expansion plans until the future political direction becomes clearer.
Government Officials Criticize the Veto
The veto immediately drew sharp criticism from senior government officials, who contend that the decision leaves consumers vulnerable. Finance Minister Andrzej Domański stated on X that “already now 20% of clients are losing their money as a result of abuses in this market,” and asserted that President Nawrocki had “chosen chaos” and must accept full responsibility. Deputy Prime Minister and Foreign Minister Radosław Sikorski echoed these concerns, arguing that the bill was essential for curbing fraud. Sikorski wrote, “When the bubble bursts and thousands of Poles lose their savings, at least they will know who to thank.”
For proponents of the law, the veto delays much-needed oversight for the cryptocurrency industry. Conversely, critics argue that the rejected bill would have granted extensive surveillance powers to the state, prompted businesses to relocate abroad, and imposed compliance costs that would be unmanageable for domestic startups.
Crypto Advocates' Response to the Veto
Industry representatives largely welcomed the veto, asserting that consumer protection should not be achieved through excessive controls. Polish economist Krzysztof Piech disputed claims that President Nawrocki would be accountable for future financial losses, stating that authorities already possess the means to address scams and should not rely on broad new restrictions. Crypto advocates also highlighted the upcoming EU-wide implementation of MiCA, arguing that a unified framework would provide consumer protections without the additional layers introduced in Poland's proposed legislation. Polish politician Tomasz Mentzen, who opposed the bill from its inception, had anticipated the refusal. He and other critics deemed the website-blocking mechanism alone sufficient grounds for a veto, warning that such a measure could be misused against legitimate businesses during disputes or investigations.
Investor Takeaway
Should the Sejm override the veto, which requires a three-fifths majority, Poland would adopt one of Europe’s more stringent regulatory regimes for cryptocurrencies. If the veto is upheld, firms will continue to operate under a fragmented system until MiCA takes full effect in 2026.
Future Outlook for Poland's Crypto Market
Poland operates under a semi-presidential system where the president's veto power is a significant institutional tool. Overturning this veto would necessitate a three-fifths majority in the Sejm. Given the current political division between the governing coalition, led by Prime Minister Donald Tusk, and the opposition-backed president, achieving this threshold is expected to be challenging. President Nawrocki, elected in June as an independent with support from the Law and Justice party, campaigned on a platform of defending civil liberties. His political opponents, however, argue that his veto undermines consumer protection efforts.
Supporters of the veto contend that it prevents rushed legislation that could harm a growing sector of the economy. Poland currently finds itself in a state of regulatory uncertainty. Businesses must navigate partial oversight without a comprehensive national framework, while the full protections offered by MiCA are still more than a year away. The next steps lie with the lawmakers: they must decide whether to attempt an override of the veto, redraft the bill, or await the full implementation of EU-wide rules.