Poland’s Crypto Clash: Government Reintroduces Vetoed Bill Citing National Security

Poland’s government, led by Prime Minister Donald Tusk, has re-adopted its controversial crypto-asset market bill without any changes, escalating a conflict with President Karol Nawrocki, who had previously vetoed the legislation.

Key Points of the Standoff:

• Government’s Stance (Tusk):
  • Tusk framed the bill as a matter of national security, citing over 100 entities in Poland’s crypto registry linked to Russia, Belarus, and other former Soviet states.
  • He argues that Russian intelligence and organized crime are using cryptocurrencies for covert financing and sabotage activities.
  • The government asserts that the state cannot be passive against these security threats, with officials suggesting that money from these circles funds political promotion.
• President’s Opposition (Nawrocki):
  • Nawrocki’s veto focused on the claim that the legislation imposed excessive restrictions that go beyond the European Union’s MiCA (Markets in Crypto-Assets) requirements and threaten property rights and civil liberties.
  • Despite security briefings, the President has not signaled any willingness to approve the current version.
• The Bill’s Provisions:
  • The measure would implement MiCA-style rules, including licensing for crypto-asset service providers, investor protection, stablecoin reserve requirements, and anti-money laundering controls.
  • It grants the Polish Financial Supervision Authority (KNF) sweeping powers, such as the ability to:
    • Block crypto-related websites.
    • Impose fines up to 10 million zloty or prison terms up to five years.
    • Order account blocking for up to 6 months under suspicion of market abuse.
• Criticism & Market Impact:
  • Critics, including opposition lawmakers, warn that the strict framework and the KNF’s slow licensing process could cripple Poland’s crypto sector and drive businesses and talent to other jurisdictions.
  • The failed veto override leaves Poland as the last EU member without national MiCA-style regulation ahead of the July 1, 2026, compliance deadline.

The unchanged bill will now return to Parliament later this year, despite the presidential opposition.