Polish crypto regulation faces further obstacles as the president vetoes the MiCA localization bill for the second time, potentially accelerating industry migration abroad

On February 14, it was reported that Poland’s highly anticipated “Cryptocurrency Asset Market Law” was vetoed again by President Karol Nawrocki. This marks his second refusal to sign the bill into law. The draft, originally promoted by Prime Minister Donald Tusk’s cabinet, aimed to convert the EU’s Markets in Crypto-Assets (MiCA) regulation into domestic law, but it has continued to spark controversy due to its regulatory scope far exceeding European standards.

The bill proposes to grant the Polish Financial Supervision Authority (KNF) greater powers, including the ability to suspend or prohibit the issuance and trading of crypto assets, and to impose hefty fines on issuers, service providers, and related intermediaries—up to 10 million zloty (approximately $2.8 million). Additionally, the KNF would establish a registry of websites suspected of crypto fraud and pursue criminal charges against unreported service providers. Industry insiders believe these provisions could impose excessive restrictions on domestic crypto businesses.

In his veto statement, the president noted that the framework is “procedurally cumbersome, ambiguously defined, and disproportionate,” which could not only harm citizens’ freedoms and property rights but also impact national economic stability. Although the parliament had reduced the regulatory fee from 0.4% to 0.1%, this amendment did not alter the core structure of the bill.

Currently, the draft will return to the Warsaw parliament, but the ruling coalition lacks enough votes to override the president’s veto. KNF has warned that if the new regulations are not passed by July 1, all domestic Polish crypto platforms will be considered illegal operations. Industry representatives are concerned that the ongoing political deadlock may force companies to relocate to more crypto-friendly regulatory environments in Europe, such as the Baltic states.

Political tensions surrounding the bill continue to escalate, with the executive branch and parliamentary majority even investigating potential links between Nawrocki and the crypto industry. As uncertainty grows, Poland’s crypto ecosystem faces a critical crossroads.