Poland's crypto regulatory bill faces delays, sparking a fierce power struggle between the pro-crypto president and the strong-regulation prime minister.

The image on the left shows Polish Prime Minister Donald Tusk, and the image on the right shows President Karol Nawrocki (AI-generated).

Author: Zen, PANews

As the year draws to a close, Poland has begun a fierce battle over cryptocurrency regulatory legislation.

On December 9, the Polish government resubmitted the cryptocurrency bill, and on December 10, it was submitted again to the Polish lower house (Sejm). The content of the bill is exactly the same as the version that the president had just vetoed a few days earlier, with "not a single word changed".

This move caused a huge uproar in Polish politics: the government of liberal Prime Minister Donald Tusk insisted that the bill involved national security and could not be delayed, while the nationalist President Karol Nawrocki strongly blocked it on the grounds of protecting civil liberties and market vitality.

This struggle over the cryptocurrency market legislation will leave Poland as one of the few EU countries that has not yet completed its own domestic legislation to support the Crypto Asset Market Regulation Act (MiCA).

Why is Poland's cryptocurrency law "strongly regulated"?

Poland's cryptocurrency market bill aims to align its national laws with the EU's MiCA regulations.

The bill establishes a unified regulatory framework for the crypto asset industry. Key provisions include clarifying the scope of regulation and licensing system, standardizing anti-money laundering and transparency obligations, emphasizing consumer protection measures, and establishing regulatory fees and industry standards.

Specifically, the bill designates the Polish Financial Supervisory Authority (KNF) as the primary regulatory body for the crypto asset market. All Crypto Asset Service Providers (CASPs) must register with the KNF and obtain a license to operate legally. This covers cryptocurrency exchanges, custodian wallet providers, token issuers, and stablecoin issuers. Service providers must report their business activities to the KNF and undergo regulatory review; those who violate the regulations will face sanctions. The bill even introduces criminal liability, stipulating that issuing tokens or providing crypto asset services without a license will be subject to criminal prosecution.

Furthermore, the bill explicitly includes crypto asset servicers within the framework of anti-money laundering and counter-terrorist financing regulations, requiring them to comply with relevant provisions of the Anti-Money Laundering Law. This means that CASPs must implement obligations such as Know Your Customer (KYC) and reporting suspicious transactions to prevent crypto assets from being used for illicit financial activities. At the same time, the bill strengthens information reporting and transparency requirements, for example stipulating that crypto businesses must report transaction data to tax and law enforcement authorities, and strictly limiting intelligence obtained from other EU countries to the use of tax, law enforcement, and anti-money laundering agencies only. Through these measures, regulatory authorities hope to improve market transparency and strengthen cross-border regulatory cooperation.

Given the widespread popularity of crypto investment in Poland and the frequent occurrence of risk events, the bill emphasizes the addition of investor protection provisions. For example, it strengthens regulations on crypto asset advertising and information disclosure, requiring token issuances to provide clear white papers or risk warnings (consistent with MiCA requirements) to prevent misleading advertising and scams. Simultaneously, the KNF can take swift action against platforms suspected of fraud, including rapidly blocking related websites. Legislators believe these measures will help curb fraud in the crypto space, protect investor rights, and maintain market confidence.

To support regulatory efforts, the bill establishes a regulatory fee system for crypto service providers, requiring licensed institutions to pay a percentage of the fees to fund KNF's daily oversight. However, this provision was highly controversial during the legislative process—the fees were set quite high, with the president and opponents arguing that this would make it difficult for startups to survive, benefit only large foreign financial institutions, stifle competition, and seriously jeopardize innovation.

The bill, exceeding 100 pages in length, details compliance requirements and penalties for each stage of cryptocurrency issuance, trading, and custody, appearing exceptionally comprehensive compared to the concise legislation of neighboring countries, which consists of only a few dozen pages. Supporters argue that this "strong regulation" will help prevent systemic risks, while opponents worry that overly complex regulations will increase the compliance burden on companies.

Historical Context: How the Bill's Impasse Arose

According to publicly available reports, Poland began working on incorporating MiCA into its legal system as early as February 2024, when the Polish Ministry of Finance released a draft of the Crypto Asset Markets Act and solicited public opinions on the government's legislative center website.

Six months later, in August 2024, the government released an updated version of the draft bill. The new draft bill made adjustments to the transition period and license application process, such as bringing forward the transition period from the original end of 2025 to June 30, 2025, in order to accelerate the implementation of MiCA.

In June of this year, the Polish coalition government formally passed the bill on the cryptocurrency market and submitted it to parliament for review. At this time, the ruling coalition was led by Polish Prime Minister Donald Tusk, who advocated for the swift implementation of EU regulations. Meanwhile, right-wing parties in opposition after the 2023 general election, including the Law and Justice Party and the CDU/CSU alliance, held reservations about the bill, but because they were not in power, the bill proceeded smoothly.

In November 2025, the Polish lower house of parliament (Sejm) passed the bill in a final vote. Members of the ruling coalition unanimously supported it; this coalition, spanning left, center, and right factions, formed a stable majority. The right-wing opposition, which considered the bill too harsh, voted against it but failed to block its passage due to insufficient seats. The bill was then submitted to the president for signature to take effect.

However, Polish President Karol Nawrocki vetoed the cryptocurrency market bill earlier this month. In a presidential proclamation, he harshly criticized the bill, arguing that it jeopardized the freedom and property of Polish citizens and the stability of the country. He specifically pointed out that the "one-click website blocking" regulatory measures were too vague and easily abused, potentially infringing on the rights of legitimate businesses.

Nawrocki also questioned the length of the Polish regulations and the excessive regulatory fees, arguing that they were "too restrictive" compared to the simpler practices of neighboring countries and could drive innovative companies out of Poland. This is one of the rare cases in Poland where the president used his veto power to reject economic legislation, bringing the bill to a standstill.

Faced with the president's strong opposition and rebuttal, the Polish lower house of parliament immediately convened a special session to attempt to overturn the president's veto, but failed to obtain the required three-fifths majority. In the vote that day, only 243 members voted to overturn the veto, below the legal threshold of at least 276 votes.

The debate surrounding the bill was highly charged before and after the vote. Prime Minister Tusk briefed lawmakers on "urgent national security information" in a closed-door meeting before the session and also posted on X, calling the vote "a contest between Russian funds and services and the security of the state and its citizens." Tusk told parliament, "There is no doubt that this market is extremely vulnerable to exploitation by foreign powers, intelligence agencies, and the mafia. The challenge for the state is to provide the necessary tools to ensure it is not left helpless."

The president's side condemned the prime minister for dichotomizing the issue, and the chief of staff of the presidential office, Zbigniew Bogucki, stated that opposing the bill should not be equated with supporting the Russian mafia. Despite the ruling camp's efforts to mobilize, the opposition and some hesitant members of parliament ultimately maintained the veto. He called on the government to cooperate with the presidential palace to draft a new law.

Tusk's side was clearly unwilling to back down. Just days after the president's veto was upheld, the cabinet, led by the prime minister, disregarded the president's objections and submitted the original bill to parliament again on December 9th for a new round of legislative proceedings. It is noteworthy that this version was claimed to be "unchanged."

The government's move is tantamount to a blatant challenge to the president, urging him through the media to sign the new law as soon as possible, claiming that continued delays would expose Poland to greater cryptocurrency security threats from forces such as Russia. This rare stalemate has made the cryptocurrency regulatory bill a focal point of contention between the two major political camps, adding uncertainty to the legislative trajectory in the coming months.

Ice and Fire: Behind the Crypto Regulatory Debate

Similar to US President Trump, Polish President Karol Nawrocki pledged to build a crypto-friendly economy and oppose excessive regulation during his 2025 presidential campaign, gaining support from some crypto investors and liberal voters.

Therefore, it is understandable that the pro-crypto president and his supporters (mainly the right-wing opposition) opposed the bill. Their core reason is the concern that excessive regulation would stifle markets and infringe on freedom. In his veto statement, Nawrocki emphasized that the bill grants regulators overly broad powers, such as allowing KNF to easily block accounts or domains, which he sees as threatening citizens' economic freedom.

The presidential office pointed out that the Polish version of the regulations is complex, lengthy, and demanding, inconsistent with the streamlined approach taken by neighboring countries when implementing MiCA. Zbigniew Bogucki criticized the bill as "overburdening and contrary to the original intent of EU legislation." They cited examples such as the Czech Republic and Slovakia, which completed MiCA alignment with only a dozen pages of regulations, while Poland produced hundreds of pages of regulations, arguing that this creates unnecessary bureaucratic hurdles.

On the economic front, the president's camp worried that high regulatory costs and cumbersome requirements would force local crypto startups to relocate to more lenient environments like Lithuania and Malta. This view was also supported by politicians such as Poland's far-right Coalition party. Coalition leader Sławomir Mentzen publicly stated that the bill would destroy Poland's emerging crypto market, and he viewed the president's veto as a victory for protecting innovation.

Prime Minister Donald Tusk and the ruling coalition strongly advocate for immediate and strengthened regulation to safeguard national security and fulfill EU obligations. Tusk has repeatedly emphasized that the unregulated cryptocurrency market provides opportunities for criminals and hostile forces, making it vulnerable to exploitation by foreign intelligence agencies and mafia organizations. He will push the bill to the level of national security, stating bluntly, "Either you side with Russian black money and spies, or you support my bill."

During the parliamentary debate, Tusk pointed out that intelligence indicated hundreds of crypto companies registered in Poland had links to Russia and other former Soviet countries, suggesting that the Polish crypto market had been infiltrated by Russian influence. He expressed concern that unregulated capital flows could be used for money laundering, funding sabotage, or evading sanctions.

The ruling camp also repeatedly cited the high incidence of domestic fraud cases: government officials revealed that since the beginning of 2024 there have been more than 5,800 cases of fraud involving crypto assets, and the lack of regulation has left the market as chaotic as the Wild West. In their view, lagging legislation is tantamount to leaving consumers at risk.

Another major argument of the Tusk government is the unification process of the EU's MiCA: each member state must designate a national regulatory body and issue CASP licenses on time, otherwise its companies will be unable to conduct legal business in the EU. Deputy Finance Minister Jurand Drop warned that if Poland fails to establish a MiCA framework by July 2026, its crypto companies will have to register overseas, and tax revenue and fees generated from services provided to Polish customers will flow abroad. Furthermore, Polish users will face difficulties in cross-border legal recourse should they encounter problems on foreign licensed exchanges.

The debate between the Polish president and prime minister over the cryptocurrency bill reflects deep-seated differences between the two sides regarding their approaches to economic regulation, security concerns, and EU integration. The president and the right wing prioritize market freedom and vitality, believing the government should not excessively intervene in emerging industries; they fear that a wave of regulations like this bill would undermine Poland's potential as a crypto-friendly market. Conversely, the prime minister and the ruling coalition favor stronger regulation to ensure stability, believing that moderately strict rules can purify the market environment and ultimately benefit the industry's healthy development.

In summary, the debate over Poland's cryptocurrency bill transcends mere technicalities, effectively becoming a political struggle between the ruling coalition and the conservative presidential palace. The Tusk government, citing the need to maintain financial order and national security, is pushing for the legislation's implementation; President Navrodsky, on the other hand, is waving the banner of protecting free markets and civil rights, using his veto power as a weapon to challenge the government.

The debate surrounding the encryption bill continues. The ruling camp may try to persuade some opposing lawmakers to pass a new version of the bill, or make concessions on details in exchange for the president's signature. As for the president, whether he can find a balance between upholding principles and international pressure remains to be seen.

Regardless of the outcome, this dispute has become a landmark event in the history of Polish digital policy, highlighting the delicate and important issue of balancing regulation and freedom, and state and EU.