Presidential Veto Halts Implementation of New Crypto Legislation

President Karol Nawrocki of Poland has vetoed the country’s sweeping Crypto-Asset Market Act, halting the implementation of new legal measures intended to bring Poland into line with forthcoming EU crypto legislation. The move garnered applause from members of the cryptocurrency community, but also drew criticism from government representatives and industry stakeholders. According to the president’s office, the 100-page bill “genuinely threatens the freedoms of Poles, their property, and the stability of the state,” citing that many provisions lacked proportional safeguards. A clause granting authorities the power to block websites of crypto firms became the most contentious element to discuss, with the president warning that these could be used at will and could limit users’ access to funds.

Crypto Community Applauds Veto, Government Officials Sound Alarm

First proposed in June, the bill has drawn pushback from industry advocates, such as Polish politician Tomasz Mentzen, who had predicted that the president would not push it forward by signing even when it received a green light from parliament. The bill had already cleared a major legislative hurdle when the lower house, the Sejm of the Republic of Poland, approved it in late September 2025 with 230 votes in favor and 196 against. The bill was then sent to President Nawrocki on 12 November 2025. The president’s veto thus concludes a long and complex legislative process involving multiple readings, revisions, and mounting concern from crypto-friendly politicians and businesses that Poland’s “local MiCA” could become far stricter than necessary. While crypto supporters hailed 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. One of the main reasons cited for the veto was a provision that would have allowed authorities to block websites operating in the cryptocurrency market easily. “Domain blocking laws are opaque and can lead to abuse,” the president’s office said in an official press release.

President Nawrocki Cites Overregulation as Reason for Veto

The president’s office also cited the bill’s widely criticized length, saying its complexity reduces transparency and leads to “overregulation,” especially when compared with simpler frameworks in the Czech Republic, Slovakia, and Hungary. The president stated that overregulation is an easy way to drive companies to the Czech Republic, Lithuania, or Malta, rather than creating conditions for them to operate and pay taxes in Poland. Nawrocki also highlighted the excessive amount of supervisory fees, which may prevent startup activity and favor foreign corporations and banks. “This is a reversal of logic, killing off a competitive market and a serious threat to innovation,” he stated.

Backlash from Government Officials and Counterarguments from Advocates

The Polish president’s refusal to approve the bill has triggered a strong backlash from top 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. He accused the president of having “chosen chaos” and shouldering full responsibility for the fallout. Sikorski concurred with the criticism and noted that the bill was intended to regulate the cryptocurrency market. “When the bubble bursts and thousands of Poles lose their savings, at least they’ll know who to thank,” he wrote on X. However, crypto advocates, including Polish economist Krzysztof Piech, countered, arguing that the president should not be blamed for the authorities’ failures to pursue scammers. Piech also pointed out that the EU’s Markets in Crypto-Assets Regulation (MiCA) will grant investor protections to every member state starting July 1, 2026.