Poland's Crypto Regulation Stalled After Third Veto

Poland's cryptocurrency regulation remains stalled after lawmakers failed to override President Karol Nawrocki's third veto of the legislation. The Sejm, Poland's parliament, fell 25 votes short of the required three-fifths majority needed to overturn the veto. Of 442 lawmakers present, 241 supported the motion, while 198 opposed it and three abstained.

The proposed legislation would have placed the domestic crypto market under the Polish Financial Supervision Authority (KNF). However, Nawrocki has repeatedly argued that the government-backed proposal places excessive regulatory burdens on legitimate crypto businesses. He has also warned that stricter requirements could encourage Polish companies to relocate their operations elsewhere.

The defeat follows two earlier failed attempts to overturn presidential vetoes. The legislative deadlock creates additional uncertainty for Poland's cryptocurrency industry as the European Union's Markets in Crypto-Assets (MiCA) framework takes effect. MiCA establishes common regulatory standards across the European Union, while national authorities remain responsible for licensing, supervision, and enforcement.

The lack of a fully functioning domestic licensing framework leaves local crypto businesses facing difficult regulatory choices. According to industry and regulatory estimates, around 2,000 virtual asset service providers operate in Poland, while only a small number have secured MiCA authorization elsewhere in Europe. Companies can instead seek licenses in countries such as Lithuania, Latvia, or Germany.