Poland Stalls on MiCA Implementation After Veto Blocks Crypto Bill

Poland’s parliament failed to override the president’s veto, halting progress on crypto regulations.

Poland is now the only EU country without a MiCA framework for digital assets.

Despite regulatory uncertainty, Poland’s crypto market continues to grow, with 7.9 million users.

Poland’s parliament fell short by 18 votes in its attempt to override President Karol Nawrocki’s veto of the Crypto-Asset Market Act. According to a report by Bloomberg, the failed vote leaves Poland as the only EU country without a domestic framework for MiCA. This outcome means that the government must restart the legislative process.

Veto Blocks Crypto Bill

The Sejm, Poland’s lower house, could not reach the three-fifths majority needed to override the veto. The decision to veto the bill came from President Nawrocki earlier this week. He argued that the legislation was more complex than similar frameworks in other EU countries.

Nawrocki’s veto also criticized the bill for potentially harming Poland’s crypto industry. He expressed concerns that the law might push domestic crypto firms to relocate abroad. His decision has put a halt to the country’s efforts to align with the European Union’s MiCA framework

Prime Minister Donald Tusk supported the bill, viewing it as a necessary measure for national security. Tusk’s coalition argued that the bill would help prevent illegal activities involving digital assets, such as financing from Russian intelligence services. However, Nawrocki’s office rejected this argument, accusing Tusk’s team of presenting a false dilemma to parliament.

Poland Becomes EU’s Lone MiCA Holdout

Poland now stands alone in the European Union without a regulatory framework for crypto assets. Several EU countries, including Germany, Malta, and the Netherlands, have already issued licenses under the MiCA framework. These countries are moving forward with the EU’s digital asset regulation, which goes into full effect in December 2024.

Poland’s crypto market is still on the rise, with Chainalysis placing the country at the eighth spot in Europe in terms of cryptocurrency transactions made between the 2024 and 2025 years. The regulatory uncertainty during this period did not stop the country from experiencing a remarkable crypto transaction volume growth of more than 50% year-over-year

According to the estimates, around 7.9 million, or one-fifth of the Polish population, are engaged in cryptocurrency transactions. Statista’s figures also support the argument that digital assets in Poland are becoming increasingly important regardless of the lack of regulatory clarity.

Split Views on the Legislation

Industry groups in Poland were divided over the Crypto-Asset Market Act. Some supported the bill as a step toward regulatory clarity for crypto businesses. However, others warned that its requirements would harm innovation and overburden companies in the sector

The CEO of Zondacrypto, one of Poland’s largest crypto exchanges, criticized the bill. He called it a “step backward,” arguing that it would risk criminalizing core blockchain development activities. Despite this, some in the industry see the bill as an important move toward regulation. As Poland remains the last EU member without a crypto framework, other countries are pushing forward with MiCA.

Italy has reminded crypto firms to comply with the December 30 deadline for MiCA. Firms must either apply for licenses or cease operations, according to Italy’s financial regulator. In the meantime, Poland’s regulatory battle continues as its parliament debates the future of crypto regulation. The MiCA framework is set to reshape the crypto industry across the European Union by the end of 2024.