Ignoring the presidential veto, Poland’s government reintroduced its crypto law, citing concerns over Russian-linked activity in the crypto registry
Poland Reintroduces Controversial Crypto Law Amid Security Concerns
Poland’s government has pushed forward with its controversial crypto-asset bill, reintroducing it without changes despite a recent veto from President Karol Nawrocki. Lawmakers had failed to override the veto last week, escalating tensions between the executive and legislative branches.
Prime Minister Donald Tusk framed the legislation as a national security measure, citing over 100 entities in Poland’s crypto registry with links to Russia, Belarus, and other former Soviet states. Government spokesman Adam Szłapka confirmed that the new bill is identical to the version rejected by Nawrocki — “not even a comma” has been changed.
Tusk emphasized the urgency of regulating cryptocurrencies, warning that hostile actors were exploiting the unregulated market for sabotage and illicit financing. He pointed to Russian intelligence and organized crime groups allegedly using crypto to fund covert operations, including political campaigns and potentially even attacks on infrastructure.
“Poland cannot stay passive while crypto becomes a tool for hostile foreign money and mafia activity,” Tusk told reporters.
Presidential Concerns
President Nawrocki opposed the law, arguing it went beyond EU requirements under the MiCA framework and threatened civil liberties. While his office remains open to regulation, he has not signaled support for the current version. The bill would give the Polish Financial Supervision Authority (KNF) sweeping powers, including licensing requirements for crypto firms, the ability to freeze accounts for up to six months, and fines or prison sentences for serious violations. Critics warn such strict rules could stifle Poland’s three-million-strong crypto user base and push businesses abroad.
Industry and Market Impact
Economists and industry advocates have raised concerns that the law is unnecessary since MiCA regulations will protect EU residents starting July 2026. They also warn that the licensing process, which averages 30 months in Poland, is far slower than in neighboring countries, potentially driving companies to relocate and taking tax revenue and talent with them.
The dispute also highlights broader European debates over crypto supervision, as the European Commission considers centralizing oversight under ESMA instead of leaving it to national regulators.
Despite these tensions, the government insists that strict regulation is crucial to protect national security, leaving Poland as the last EU country without MiCA-style national legislation ahead of the 2026 compliance deadline.
