Poland’s Sejm has failed to overturn President Karol Nawrocki’s third veto of a cryptocurrency regulation bill, leaving the latest version of the legislation unable to move forward.
In the Sept. 4 vote, 241 lawmakers supported overriding the veto, while 198 opposed the motion and three abstained. Because Polish law requires a three-fifths majority, the measure needed 266 votes with at least half of the 460-member Sejm present. It therefore fell 25 votes short.
The proposed legislation would have placed Poland’s cryptocurrency market under the supervision of the Polish Financial Supervision Authority, known as the KNF. It was intended to establish a domestic framework for implementing the European Union’s Markets in Crypto-Assets Regulation, or MiCA.
Nawrocki has said he supports stronger rules for the cryptocurrency industry but considers the government-backed legislation too restrictive. When issuing his third veto, he argued that lawmakers had addressed only one of 16 changes previously proposed by his office.
The president has warned that the legislation could impose excessive costs and regulatory burdens on Polish crypto companies, potentially encouraging some businesses to move their operations to other jurisdictions. His office has proposed a separate framework that it says would strengthen protections against fraud and financial crime while reducing the burden on legitimate companies.
The failed Sept. 4 override was the latest development in a dispute that has continued through several versions of Poland’s proposed crypto law.
Nawrocki first vetoed the Crypto-Asset Market Act on Dec. 1, 2025, objecting in part to proposed powers that would allow the regulator to block crypto-related websites and to the financial costs the framework could impose on businesses. The Sejm later voted 243–192 to overturn that veto but failed to reach the required three-fifths threshold.
Parliament subsequently passed another version, which Nawrocki vetoed on Feb. 12, arguing that it was largely unchanged from the original legislation. A second attempt to override the veto failed on April 17, with 243 lawmakers voting in favor, 191 against and three abstaining.
By May, lawmakers were considering competing proposals from the government, the president’s office, Poland 2050 and the Confederation party. The proposals differed over the KNF’s enforcement powers and the penalties it could impose.
The government-backed bill eventually passed the Sejm on May 15 amid an investigation involving the Zondacrypto exchange. The legislation included licensing and reporting requirements for crypto service providers, KNF supervision and criminal penalties for certain violations involving token issuance and crypto services.
Although MiCA already applies throughout the European Union, national authorities remain responsible for licensing, supervision and enforcement within the common regulatory framework. The rules cover crypto service providers, exchanges, custodians and certain token issuers, while authorized companies can use passporting arrangements to provide services across EU member states.
The EU’s transition period ended on July 1, leaving companies without the required authorization facing restrictions or an orderly withdrawal from the market. An ESMA register cited in June showed that 244 crypto service provider licenses had been issued shortly before the deadline, with Germany and France accounting for more than one-third.
The political dispute over the legislation has also been influenced by allegations surrounding Zondacrypto. Before the Sept. 4 vote, Prime Minister Donald Tusk urged lawmakers to override Nawrocki’s veto and referred to testimony from an investigation involving the now-defunct exchange.
According to Polish Radio’s account of the parliamentary debate, Tusk read portions of witness testimony that implicated former Justice Minister Zbigniew Ziobro. The testimony allegedly claimed that Ziobro had promised to stop the Zondacrypto investigation if he returned to power.
The testimony cited by Tusk alleged that PLN 2 million, or roughly €463,000, was intended as compensation for Ziobro and would be transferred through a foundation established by his brother. It further alleged that PLN 500,000, approximately €116,000, was designated for Ziobro’s personal expenses.
Tusk said the testimony identified Ziobro’s wife, Patrycja Kotecka, as the main participant in the alleged arrangement. The claims remain part of an investigation and have not been established as court findings.
During the debate, Tusk also accused members of the opposition Law and Justice party, or PiS, of supporting individuals connected to questionable cryptocurrency activities.
The Zondacrypto controversy had already featured in the April veto dispute. At that time, Tusk alleged that the exchange had received funds connected to Russian organized crime and supported political and social events associated with right-wing groups in Poland.
Nawrocki has rejected suggestions that he was connected to Zondacrypto. He said in April that he had never met the company’s chief executive, Przemysław Kral, or its representatives and had no information indicating that the exchange supported his presidential campaign.
Poland’s failed vote does not directly affect cryptocurrency exchanges, investment products or other regulated crypto services in the United States. The legislation concerns Poland’s implementation and enforcement of the EU’s broader MiCA framework.
The United States is pursuing a different regulatory approach through federal agencies and Congress. On Aug. 18, the Securities and Exchange Commission proposed Regulation Crypto Assets, which would establish rules for certain investment contracts involving digital assets.
The proposal includes an exemption for offerings of up to $5 million over four years and another allowing qualifying issuers to raise as much as $75 million over a 12-month period. It also proposes disclosure requirements and a conditional safe harbor concerning when a crypto asset would no longer be treated as part of an investment contract.
SEC Chair Paul Atkins said the proposal is intended to provide crypto companies with clearer fundraising pathways under federal securities laws while maintaining investor protections. The agency opened a 60-day public comment period after publishing the proposal.
Unlike Poland’s proposed law, the SEC framework would focus primarily on securities offerings rather than establishing a nationwide operating license comparable to MiCA authorization. U.S. crypto businesses can also be subject to Commodity Futures Trading Commission rules, state money-transmitter requirements and other federal or state regulations depending on their activities.
Separately, Poland has requested the extradition of Ziobro from the United States. Polish Radio reported that he has lived there since May after losing refugee status in Hungary. The extradition request reportedly covers 19 of the 26 alleged offenses he faces in a separate investigation concerning his conduct while in government.
