- Polish parliament passes crypto bill giving regulators new powers over digital assets and exchanges.
- Smaller crypto startups may struggle under strict rules while larger firms adapt and continue operations.
- Bill aligns Poland with EU crypto rules but adds extra controls that may push businesses abroad.
The Polish parliament has approved the government’s proposed Crypto-Asset Market Act after a heated political clash. Earlier the legislation was vetoed by President Karol Nawrocki. The second reading of the bill was done in the Sejm by members of parliament who voted 241 against 183 in favor of the bill. Following the vote on Thursday, the bill was sent to the Senate to be revisited.
The bill will harmonize the crypto-related laws in Poland with the European Union Markets in Crypto-Assets (MiCA). Several EU countries, including Germany, Malta, and the Netherlands, have already issued licenses under the MiCA framework. It was brought as a necessity by the government to ensure the national digital market. Critics, however, caution that it goes beyond EU standards and will kill off local crypto platforms. This is because many of the smaller companies might not be able to meet the new rules.
Veto and Political Tensions
President Nawrocki first vetoed the bill on the grounds of the freedom of citizens and the stability in the state. The initial effort by the ruling coalition to vote over the veto failed due to the absence of the required support. The pro-EU government headed by Prime Minister Donald Tusk insisted that the legislation ought to consider the national security threats. Policymakers emphasized foreign players in the crypto sector in Poland, including Russia, Belarus, and other post-Soviet states.
The government was keen to find the means to control the unregulated crypto practices as well as fight any form of money laundering. This initial move did not succeed and the legislators reintroduced the bill without making any changes. The scandal has also led to an increase in political tension and the bill has become one of the most prominent topics of the current political debate in Poland.
Impact on the Crypto Industry
The Crypto-Asset Market Act provides severe compliance to the Polish crypto exchanges, brokers and blockchain projects. The law grants the Polish Financial Supervision Authority (KNF) extensive powers. The KNF can suspend platform activities, issue financial penalties, and monitor all operations in the crypto market. Companies now face new licensing, reporting, and capital obligations.
Industry experts caution that smaller startups might not withstand the regulatory pressure. Big organizations will be able to adjust to the regulations, although innovation may decrease. Certain stakeholders reckon that the bill will force companies to move to friendlier jurisdictions including Malta or the Baltic states. Others argue it provides necessary standardization and investor protection.
Senate Review and Next Steps
The bill is sent to the Senate to be discussed. Assuming that it passes, it may go back to the president to be finally approved. The government officials indicate that a security briefing can pressurize the president to sign it into law. In the meantime, the crypto industry is getting ready to undergo profound regulatory reforms. The legislation would redefine the market of digital assets of Poland, which would impact business and investors in Eastern Europe.
