Poland Crypto Regulation Stalls as Lower House Fails to Override Veto

Poland's cryptocurrency regulation bill has hit another roadblock as the country's lower house failed to override President Karol Nawrocki's veto. Despite receiving 241 votes in favor of invalidating the veto, the proposal fell short of the required three-fifths majority by 25 votes.

The bill aimed to establish an institutional framework for implementing the European Union's Markets in Crypto-Assets regulation (MiCA) domestically and grant Poland's Financial Supervision Authority (KNF) oversight powers. However, President Nawrocki argued that it could overregulate the industry, citing concerns about regulatory costs and authorities' power to block websites.

The lack of a domestic supervisory system in Poland has left a gap in crypto supervision as the country faces a large-scale fraud and money laundering probe surrounding Zondacrypto. The investigation, which is estimated to have caused at least 350 million zloty (126.97 billion won) in damages, continues to widen.

Prime Minister Donald Tusk has emphasized the need for stronger oversight, citing the ongoing investigation as a pressing concern. He revealed part of a key witness statement that alleged an arrangement to pay 2 million zloty (725,560,000 won) through a foundation linked to former justice minister Zbigniew Ziobro in exchange for a presidential pardon if convicted.