Poland's President Rejects Crypto Regulation Bill Despite EU Pressure

Source: CoinEdition Original Title: Poland’s President Rejects Crypto Regulation Bill Despite EU Pressure Original Link: https://coinedition.com/polands-president-rejects-crypto-regulation-bill-despite-eu-pressure/

• The law was intended to implement EU-wide crypto rules under MiCA (Markets in Crypto-Assets) for Poland
• If signed, it would have given the national financial supervisor, Komisja Nadzoru Finansowego (KNF), extensive authority over cryptocurrency service providers
• Prime Minister Donald Tusk said the government would bring the bill back to parliament as soon as possible

Poland’s president, Karol Nawrocki, used his constitutional prerogative to veto the bill that would have regulated the crypto-assets market in the country. The law was intended to implement EU-wide crypto rules under MiCA (Markets in Crypto-Assets) for Poland.

It had already passed the parliament in early November of this year after adoption of some Senate amendments.

If signed, the bill would have given the national financial supervisor, Komisja Nadzoru Finansowego (KNF), extensive authority over cryptocurrency service providers. This would include licensing obligations, reporting requirements, and the ability to impose sanctions or even block the websites of non-compliant firms.

Reasons for the veto

According to the president’s office, one of the main reasons for the veto was the unchecked power to shut down websites. Namely, the bill would have allowed regulators to block crypto platforms or service providers’ websites with a ‘single click,’ which was described by Nawrocki as opaque and easily subject to abuse.

This meant customers could suddenly be locked out of their accounts and lose access to their funds if a site were blocked.

Another reason is that the draft of the bill comprises more than 100 pages, far longer than comparable crypto regulation laws in neighbouring countries (such as the Czech Republic or Slovakia), which are notably shorter and simpler. Nawrocki argued that its sheer size and complexity made it confusing and could discourage small businesses and startups from operating in Poland.

Also, the president criticized high regulatory fees, saying they would only be affordable for big foreign banks and corporations. He believed this would make it impossible for small Polish crypto startups to survive, which would kill innovation and prevent a healthy local market from developing.

In his statement, the president said that while rules are needed, they must be “reasonable, proportional, and safe for users,” and that the new bill simply did not meet that standard.

Tusk Strikes Back: ‘The Crypto King’ Defense

The government quickly responded, with Prime Minister Donald Tusk saying it would bring the bill back to parliament as soon as possible.

Tusk called the veto a mistake, pointing out that the law was designed to protect Polish people who invest in crypto from scams and exploitation.