Polish Crypto Bill Fails Again as MPs Fall Short of Override Vote

Poland's crypto regulatory framework remains in limbo after lawmakers failed to override President Karol Nawrocki's veto of legislation aimed at regulating the cryptocurrency market. The proposed law would have designated the Polish Financial Supervision Authority (KNF) as the regulator and established a domestic MiCA licensing system under the European Union's Markets in Crypto-Assets Regulation.

The Sejm voted 241-198 in favor of overriding the veto, but fell short of the required three-fifths majority by 25 votes. The defeat leaves Poland without a fully functioning framework for crypto firms seeking authorization at home, forcing companies to seek licenses elsewhere in Europe or face restrictions on their activities.

Nawrocki has vetoed the proposed legislation three times, citing concerns that it goes beyond what is necessary and could push Polish crypto businesses to relocate. The regulator could block accounts and freeze transactions for up to 96 hours under the proposed framework, with the possibility of extending restrictions. Crypto-token issuers and service providers would also incur fees of 0.4% to 0.5% of the asset's value.

The veto has wider consequences, as Poland remains the only EU member without a fully functional domestic MiCA application and licensing system. Around 2,000 virtual asset service providers are registered in Poland, but only a small number have obtained MiCA licenses in other EU member states.