Polish Government Defies President, Reintroduces Identical Crypto Law

What Happened

The reintroduced bill contains no modifications from the version Nawrocki rejected, government spokesman Adam Szłapka confirmed.

He noted that Polish authorities identified several hundred foreign entities operating in the domestic crypto market, and investigations revealed that Russian intelligence and organized crime groups were exploiting digital assets for covert financing.

National Prosecutor Dariusz Korneluk established a team last week to examine files and monitor cryptocurrency-related crimes.

The government maintains that basic control is essential, given the security threats posed by hostile actors exploiting the unregulated crypto space.

The blocked law would implement MiCA-style rules through licensing requirements for crypto-asset service providers, investor protection standards, stablecoin reserve requirements, and anti-money laundering controls.

Market Context

Poland’s government adopted an unchanged version of its controversial crypto-asset market bill on Tuesday, escalating a bitter standoff with President Karol Nawrocki after lawmakers failed to override his veto last week.

Finance Minister Andrzej Domański criticized the veto’s impact, stating 20% of clients lose money to abuses in the unregulated market while the president “chose chaos.”

The legislation would also grant the KNF the authority to order account blocking for up to 6 months in cases of justified suspicion of market abuse.

Why It Matters

He suggested that money from these circles funded political promotion under a “political umbrella,” implying connections between veto supporters and questionable interests.

Still, the president has not signaled any willingness to approve the current bill despite Tusk’s hope that additional security briefings would change his position.

The Presidential Palace previously argued Nawrocki lacked full information about security risks, though government officials now assert he has complete knowledge.

Details

According to local reports, Prime Minister Donald Tusk framed the legislation as a matter of national security, citing more than 100 entities in Poland’s crypto registry linked to Russia, Belarus, and other former Soviet states.

The measure will now return to parliament later this year despite the president’s concerns about excessive restrictions that exceed European Union requirements and threaten property rights.

Szłapka declared “not even a comma” had been changed in the new bill.

Security Concerns Drive Government’s Push

Tusk emphasized the urgency of regulation before Tuesday’s cabinet meeting, arguing that the state cannot remain passive while cryptocurrencies are used as tools of sabotage by Polish adversaries.

“We’re dealing with very dangerous phenomena involving Russian money and the mafia,” Tusk told journalists after last week’s failed veto override.

Warsaw previously blamed Russia for a blast on a railway route supplying Ukraine, while security services cited cases of underground groups allegedly paid in cryptocurrencies for sabotage activities.

Presidential Opposition Remains Firm

Nawrocki’s rejection centered on claims that the legislation exceeded MiCA requirements and threatened civil liberties.

His chief of staff indicated openness to regulation provided future proposals avoid excessive restrictions.

The Polish Financial Supervision Authority would gain sweeping oversight powers, including the ability to block crypto-related websites through administrative orders and to impose fines of up to 10 million zloty or prison terms of up to five years for serious violations.

Critics including opposition lawmakers and industry figures warned the bill would cripple Poland’s crypto sector serving an estimated three million users.

Tomasz Mentzen of the Confederation party highlighted the KNF’s 30-month average licensing process, the longest in the EU, while noting neighboring countries implemented MiCA with far shorter legislation.