Poland’s crypto regulatory deadlock has deepened after lawmakers failed to overturn President Karol Nawrocki’s latest veto of legislation intended to establish the country’s domestic framework for supervising crypto businesses under the European Union’s Markets in Crypto-Assets Regulation.
The Sejm voted 241 in favor of overriding the veto, with 198 against and three abstentions. Supporters needed 266 votes, or a three-fifths majority of the 442 lawmakers present, leaving the motion 25 votes short.
The failed override means Poland still lacks a fully functioning national authorization process for most crypto-asset service providers, even though MiCA already applies across the EU.
Key Takeaways
- The Sejm failed to overturn President Karol Nawrocki’s third veto of the crypto bill.
- Lawmakers secured 241 votes, 25 short of the 266 needed.
- The bill would have formally empowered the Polish Financial Supervision Authority, or KNF, to license and supervise most crypto businesses.
- Poland’s domestic MiCA licensing route remains unavailable, while firms licensed elsewhere in the EU can still serve Polish customers through passporting.
- A new bill will be needed to resolve the dispute between the government and the president.
Poland Still Lacks a Domestic MiCA Licensing Route
The vetoed Crypto-Asset Market Act would have formally designated the KNF as Poland’s competent authority for most activities covered by MiCA. That would have given the regulator authority over crypto asset service provider applications, supervision, reporting obligations and compliance requirements.
The issue is no longer whether MiCA applies in Poland. The EU regulation already applies directly across member states. The problem is that Poland has not completed the national legislation needed to appoint and empower a domestic authority for most licensing functions.
The KNF said after the vote that it still cannot begin and complete domestic applications for authorization as a crypto asset service provider. Its existing powers are limited in this area, although it retains certain responsibilities involving issuers of electronic-money tokens.
Foreign Licensed Firms Can Still Enter Poland
The regulatory gap does not prevent all crypto companies from operating in the Polish market. Providers licensed in another EU member state can use MiCA’s passporting provisions to provide services in Poland after completing the relevant cross border notification process through their home regulator. That creates a significant difference between local firms and competitors already authorized elsewhere.
Polish companies currently lack a domestic route to obtain a CASP license, while firms approved in jurisdictions such as Germany, Lithuania or other EU markets can still reach Polish customers under MiCA. The maximum EU transitional period ended on July 1, 2026, increasing the pressure on businesses that had previously relied on Poland’s older virtual currency registration arrangements.
Nawrocki Says the Government Bill Goes Too Far
President Nawrocki has repeatedly said that he supports crypto regulation but opposes the government backed version of the law. His objections include the scale of the KNF’s proposed powers, compliance costs and provisions that could allow authorities to restrict certain websites or business activities.
Nawrocki said lawmakers addressed only one of 16 changes proposed by his office before he issued the latest veto.
“Bad law does not become good law simply because it is passed a hundred times.”
His office has argued that excessive requirements could push legitimate Polish crypto firms into other jurisdictions rather than improve consumer protection.
The government, meanwhile, has maintained that stronger domestic supervision is necessary to close Poland’s regulatory gap and protect customers.
Zondacrypto Investigation Adds Political Pressure
The latest vote came as Polish authorities continue investigating allegations connected to the collapsed Zondacrypto exchange. Prime Minister Donald Tusk used the case to press lawmakers to support the override, citing witness testimony involving former Justice Minister Zbigniew Ziobro. The allegations referenced during the parliamentary debate remain part of an ongoing investigation and have not been established as court findings.
Nawrocki has also denied allegations connecting him to Zondacrypto, including claims that the company supported his presidential campaign. The investigation has made the regulatory dispute increasingly political, with the government arguing that stronger oversight is needed while the president’s camp maintains that the proposed legislation places too much burden on legitimate businesses.
Another Bill Will Be Needed
The failed override means the legislation passed by parliament cannot take effect. Closing Poland’s licensing gap will now require another proposal that can win enough support in parliament and also secure the president’s signature. That may require lawmakers to compromise on the areas Nawrocki has repeatedly challenged, including enforcement powers, penalties and compliance obligations. Until then, the KNF remains unable to complete domestic CASP authorization proceedings for most crypto businesses.
Conclusion
Poland’s latest veto vote leaves its crypto industry in an unusual position under MiCA. The EU wide rules already apply, but Polish companies still lack a functioning domestic route for obtaining most crypto licenses. Meanwhile, providers authorized elsewhere in the bloc can continue entering the country through MiCA passporting. After three presidential vetoes and repeated failed override attempts, resolving the issue will require a new legislative compromise rather than another vote on the current bill.
