Poland’s Sejm Revives Crypto Bill, Defying Veto

Poland’s lower house of parliament just made a bold move, voting to revive a hotly debated crypto regulation bill that the president vetoed weeks ago. This push aligns Poland with the EU’s strict MiCA rules, but it has sparked fierce backlash from the industry over fears of tough restrictions. What’s next for crypto in Poland, and how will it shake up the market?

Poland’s Sejm, the lower house, voted 241 to 183 to pass the Crypto-Asset Market Act again on December 19, 2025. This came after President Karol Nawrocki vetoed the original version, calling it too restrictive. Lawmakers ignored the veto and sent the unchanged bill to the Senate for review.

The move sets up a potential showdown, as the Senate could approve it quickly, forcing another decision from the president. Critics say the bill goes beyond what’s needed to match the EU’s Markets in Crypto-Assets (MiCA) framework, which aims to create uniform rules across Europe by July 2026.

The legislation would give the Polish Financial Supervision Authority (KNF) broad powers to oversee crypto firms. This includes licensing exchanges, stablecoin issuers, and custody services.

Industry groups worry about fines up to 10 million zlotys (about $2.5 million) for violations like creating unauthorized tokens. One recent study by the Polish Blockchain Association, conducted in November 2025, found that 70% of local crypto businesses fear the rules could drive them abroad.

Poland has been slow to adopt MiCA compared to neighbors like Lithuania, where lighter regulations have attracted firms.

Why the Push for Stricter Crypto Rules?

The bill’s backers argue it’s essential for security. They point to rising threats, including Russia-linked cyber risks that have targeted Polish systems in recent years.

Government officials say the rules will require identifying large transactions over 1,000 euros and revealing beneficiaries to prevent money laundering. This mirrors MiCA’s goals but adds Polish twists, like potential account freezes by KNF without immediate court approval.

Without these measures, anonymous crypto flows could vanish into blockchains, making it hard for authorities to track illicit activities. A report from the European Commission in October 2025 highlighted that unregulated crypto has fueled over 5 billion euros in fraud across the EU last year.

Yet, opponents claim the bill creates an uneven playing field. Firms registered under MiCA in other EU countries, like Malta, won’t face Poland’s extra taxes or restrictions when operating there.

This could lead to “regulatory arbitrage,” where companies flee to friendlier spots. For everyday Poles interested in crypto, it might mean fewer local options and higher costs.

The debate heated up on social media, with posts from crypto experts warning that the bill could kill innovation.

Impact on Poland’s Crypto Industry

If the bill becomes law, KNF would gain tools to monitor and penalize non-compliant operations. This includes up to two years in prison for serious breaches.

Local startups are already feeling the pinch. For instance, a Warsaw-based exchange reported in a December 2025 interview that it’s considering relocating to Estonia due to the uncertainty.

The legislation could stifle growth in a sector that added over 1 billion zlotys to Poland’s economy in 2024, according to data from the Ministry of Finance. That’s a big hit for a country pushing digital innovation.

On the flip side, supporters see it as a step toward safer investments. MiCA’s framework has already stabilized markets in places like Germany, where crypto adoption rose 15% after similar rules kicked in.

Here’s how the bill stacks up against MiCA basics:

• Licensing: Requires KNF approval for all crypto service providers.
• Fines: Up to 10 million zlotys or 5% of annual revenue.
• Oversight: KNF can freeze assets for 96 hours without court order.
• Timeline: Full alignment by mid-2026.

These points aim to protect consumers but might scare off global players.

Crypto trading volumes in Poland dipped 20% after the veto news, per a Chainalysis report from early December 2025. That shows how policy swings can rattle investors.

Global Context and Future Outlook

Poland isn’t alone in wrestling with crypto regs. The EU’s MiCA sets a baseline, but countries like France have added their own layers without much backlash.

In the U.S., similar debates rage, with the SEC cracking down on unregistered tokens. Poland’s approach could influence Eastern Europe, where nations like Ukraine are building crypto-friendly policies amid economic pressures.

Experts predict that if the Senate passes the bill and the president signs it, implementation could start by summer 2026. But another veto might delay things further.

The political clash highlights tensions between the government and president, with crypto caught in the middle.

This bill could reshape how Poles buy, sell, and hold digital assets, potentially making the market safer but smaller. It affects everyone from casual investors to big firms, raising questions about balancing innovation with security.