Poland's Crypto Bill Veto Leaves Country Without National Supervisor

Poland's lawmakers have failed to override President Karol Nawrocki's veto of a bill aimed at tightening oversight of the country's crypto market. The proposal, which would place supervision of the cryptoasset market under the Polish Financial Supervision Authority (KNF), was voted on by the Sejm and fell short of the required supermajority, missing the three-fifths threshold by 25 votes.

The vote comes as the country's Prime Minister, Donald Tusk, highlights an expanding criminal investigation tied to the defunct exchange Zondacrypto. The scandal has added urgency for regulators and lawmakers to formalize a clearer supervisory framework. KNF warned that Poland still lacks a designated national supervisor for cryptoassets under the proposed framework.

The bill was designed to establish Poland's national approach for applying the EU's Markets in Crypto-Assets Regulation (MiCA). MiCA is already in force across the EU, but Poland's legislative process has not yet delivered the required national structure. Nawrocki has repeatedly argued that the draft goes too far, citing regulatory costs and provisions that could grant authorities powers to block websites.

The Zondacrypto investigation involves suspected fraud and money laundering related to the exchange's activities. Prosecutors have estimated damages linked to Zondacrypto at no less than 350 million Polish zlotys (about $95 million). The bankruptcy of BB Trade Estonia, the operator of Zondacrypto, has added another layer to the oversight debate.