Poland Halts Crypto Legislation After Renewed Sejm Vote

• Poland’s Sejm passed a previously vetoed crypto law again, restarting the process to align national rules with EU MiCA by 2026.
• The bill expands KNF powers, including heavy fines, prison terms and website blocks, raising concerns over scope and civil liberties.
• Long licensing timelines and strict oversight could push crypto firms abroad as Senate review and presidential approval loom.

Poland’s parliament reignited its crypto regulation struggle after lawmakers passed a previously vetoed bill, then paused talks until January. The vote took place Thursday, involving the Sejm, the Senate, and President Karol Nawrocki. The move followed concerns over regulatory scope, civil liberties and alignment with European Union crypto rules.

Sejm Revives Vetoed Crypto-Asset Market Act

On Thursday, Poland’s lower house, the Sejm, approved the Crypto-Asset Market Act by a vote of 241 to 183, with one abstention. The bill was forwarded to the Senate on Friday for review. Notably, lawmakers reintroduced the legislation without changes, despite an earlier presidential veto issued this month.

President Karol Nawrocki blocked the same bill in December, citing risks to property rights and legal certainty. At that time, lawmakers failed to secure the required three-fifths majority to override the veto. As a result, the government restarted the legislative process.

The bill aims to align Polish law with the EU’s Markets in Crypto-Assets regulation, known as MiCA, which takes effect by July 2026. Poland remains the only EU member without a national framework supporting MiCA implementation.

**Expanded Powers for Financial Regulator **

Under the proposed law, crypto-asset service providers would fall under the supervision of the Polish Financial Supervision Authority, or KNF. Exchanges, custodians, and issuers would need licenses, capital reserves, and anti-money laundering controls.

However, the bill grants KNF authority to issue fines up to 10 million zlotys and pursue prison sentences of up to five years. It also allows administrative orders to block crypto-related websites. Critics argue these measures exceed EU requirements.

Opposition lawmakers and industry groups highlighted KNF’s average licensing timeline of roughly 30 months, the longest in the EU. They warned the rules could drive firms abroad and disrupt a domestic market serving about three million users.

Presidency, Senate and Next Legislative Steps

President Nawrocki, who took office in June after winning 50.89% of the vote, previously pledged restraint on crypto regulation. In May, he stated that Poland needed innovation rather than excessive oversight.

His office later confirmed openness to regulation that stays within EU standards. A government spokesperson said the president recently received a classified security briefing on the bill.

If the Senate approves the measure without amendments, it will return to Nawrocki. Lawmakers have paused further debate until January.