Polish President Vetoes Crypto Bill for Second Time, Citing Concerns Over Freedom & Innovation

Polish President Vetoes Crypto Bill for Second Time, Sparking Political Clash

President Karol Nawrocki has vetoed a bill aimed at regulating crypto-assets in Poland, marking the second time he has blocked the legislation. He stated the revised bill remains “practically identical” to the one he previously vetoed in December, arguing it fails to address his concerns about overregulation and threats to civil liberties.

“I will not sign a bad law just because it was passed again by the parliamentary majority – a bad law passed a hundred times is still a bad law,” Nawrocki said, emphasizing his belief that Poland should be fostering innovation rather than hindering it. The president, who aligns with the right-wing opposition, has repeatedly voiced concerns about the bill’s potential impact on individual freedoms and market vitality.

The government maintains that the legislation is crucial for protecting users of crypto-assets from fraud and ensuring national security. Officials have pointed to concerns about Russian involvement in crypto markets and the use of cryptocurrencies to fund sabotage operations within Poland, as highlighted by recent intelligence reports.

The ruling coalition, a diverse group ranging from left to center-right, attempted to overturn the president’s initial veto in December but failed to secure the necessary three-fifths majority in parliament. Another attempt to override the veto is anticipated, but faces similar challenges.

The bill was designed to align Poland with the European Union’s Markets in Crypto-Assets (MiCA) regulation, designating the Polish Financial Supervision Authority (KNF) as the primary regulatory body for the crypto asset market. It would have required all Crypto Asset Service Providers (CASPs), including exchanges and wallet providers, to register with the KNF and obtain a license to operate legally.

Following the initial veto, parliament introduced a minor amendment to the resubmitted bill, reducing the maximum fee charged by the KNF for oversight from 0.4% to 0.1% of firms’ revenue. However, the core provisions of the legislation remained largely unchanged, continuing to require firms to submit information to the KNF and establishing criminal liability for certain crypto-related offenses.

President Nawrocki previously argued that these measures are overly burdensome, lack transparency, and pose a “real threat to the freedoms of Poles.”

Government spokesman Adam Szłapka responded to the latest veto on social media, stating that the presidential palace would be held “politically responsible” if individuals lose savings due to the lack of regulation.

Zbigniew Bogucki, President Nawrocki’s chief of staff, countered that the president had offered the government an opportunity to improve the bill after the first veto, but that Prime Minister Donald Tusk’s government had rejected all opposition amendments. He reiterated Nawrocki’s willingness to collaborate on a revised bill.

Foreign Minister Radosław Sikorski criticized Nawrocki, accusing him of showing “touching loyalty towards sponsors, both foreign and domestic,” referencing allegations of ties between Polish conservatives and crypto firms. Sikorski also noted that Nawrocki had not presented his own alternative crypto-regulation bill as promised.

Interior Minister Marcin Kierwiński stated on Friday that the ruling coalition remains committed to regulating the crypto market, but did not specify the next steps. Deputy Finance Minister Jurand Drop has previously warned that failure to designate a regulatory authority by July 1, 2026, could lead to firms relocating to other EU countries, resulting in lost tax revenue for Poland.