Poland parliament fails to override third crypto bill veto

Poland’s lower house, the Sejm, has failed for a third time to override President Karol Nawrocki’s veto of the Crypto-Asset Market Act. The vote on September 4–5 resulted in 241 votes in favor, falling 25 votes short of the 266-vote three-fifths majority required by the constitution to bypass a presidential veto.

The legislation aimed to establish a domestic regulatory framework to align Poland with the European Union’s Markets in Crypto-Assets (MiCA) regulation. It would have designated the Polish Financial Supervision Authority (KNF) as the official crypto regulator. Because the bill failed, the KNF currently lacks the legal basis to issue domestic licenses to crypto-asset service providers (CASPs). This has created a regulatory gap, forcing many Polish crypto firms to seek authorization in other EU jurisdictions like Lithuania, Latvia, or Germany to operate legally within the union.

President Nawrocki has defended his repeated rejections, stating that the government’s version of the law was too restrictive and failed to incorporate many of his proposed amendments. He argued that the bill could impose excessive burdens on the industry and threaten economic stability.

The legislative deadlock occurs amid a significant political scandal involving the Zondacrypto exchange. Prosecutors are investigating allegations of fraud, money laundering, and improper political influence related to the firm, whose Estonian operator has declared bankruptcy. Prime Minister Donald Tusk has used the scandal to criticize the opposition, alleging they facilitated Zondacrypto’s influence within the Polish state.