Poland Fails to Overturn Veto on MiCA Crypto Regulation

Poland's Sejm fails to override a presidential veto on crypto legislation, leaving the KNF without formal oversight powers despite EU MiCA rules.

The legislative decision arrives as the investigation into Zondacrypto intensifies, with prosecutors estimating alleged damages at a minimum of 350 million PLN.

Poland Falls 25 Votes Short of Overturning Veto

During the Sejm vote, 241 deputies supported rejecting the presidential veto, while 198 voted against it and three abstained, according to reports from Polish National Radio. With 442 deputies participating, the required three-fifths majority stood at 266 votes, leaving the ruling coalition 25 votes shy of their goal.

This marks the third failed attempt regarding the legislation after President Nawrocki issued his third veto in June. The President justified his stance by citing concerns that the proposed regime exceeds what is necessary to implement European rules and could drive local crypto companies to other jurisdictions.

The dispute does not center on the existence of MiCA itself. While the European regulation already establishes common rules for crypto-assets across the EU, the Polish bill was intended to build the national infrastructure for their implementation, including granting supervisory powers to the Polish Financial Supervision Authority (KNF).

Why the Veto Creates a Regulatory Gap Despite MiCA

Although MiCA applies at the European level, national institutions must possess specific powers for licensing, oversight, and the enforcement of sanctions. Without the passed law, Poland lacks the designated national authority defined within it to perform these functions for the crypto-asset market.

This is where the positions of the government and the presidency diverge. The cabinet views the law as a necessary mechanism for consumer protection and the enforcement of European standards. Nawrocki, however, challenges Warsaw’s implementation methods, specifically the expanded powers granted to authorities and the regulatory burden placed on companies.

For the crypto industry, the result is ongoing uncertainty regarding the local supervisory regime. While companies can comply with European requirements, Poland still lacks a finalized institutional structure for their national enforcement.

Zondacrypto Transforms Regulatory Dispute into Political Crisis

The vote coincides with an expanding criminal investigation into Zondacrypto, formerly known as BitBay. Polish prosecutors launched formal proceedings in April, investigating alleged fraud against clients and operations that may have concealed the criminal origin of funds.

According to prosecutors, the exchange owner stated that the company has lacked access to a cold storage wallet—allegedly containing approximately 4,500 BTC—since 2022, information that was not disclosed to clients. As of April, the claimed damages were at least 350 million PLN (nearly $95 million).

The investigation continues to grow. On September 2, three additional individuals were detained, with prosecutors requesting their temporary arrest on charges related to an organized criminal group and actions causing significant property damage to the operator BB Trade Estonia.

Tusk Leverages Investigation in Crypto Bill Battle

Prime Minister Donald Tusk placed the Zondacrypto case directly at the center of the parliamentary debate. Shortly before the vote, he cited materials from the investigation to argue that stronger oversight is necessary not only for investor protection but also to mitigate risks to state institutions.

This shifted the bill from a technical dispute over MiCA into a broader political conflict. The government used the investigation as evidence that the lack of effective national oversight creates real risks, while opponents of the law maintain that the proposed powers go too far.

Allegations regarding political connections and influence arising from witness testimony in the case remain part of an ongoing investigation and should not be treated as established guilt.

What Changes After the Third Sustained Veto

The failed vote does not appear to be the end of the legislative battle. Finance Minister Andrzej Domański has already called for the project to be reintroduced, which would mark a fourth attempt at establishing a national framework.

Poland now faces an unusual situation: European crypto-asset rules are in effect, yet a political conflict blocks the national mechanism through which they must be applied and controlled.

The next bill will reveal whether the government is willing to compromise on controversial powers to secure the necessary support or if it will submit virtually the same text. Meanwhile, developments in the Zondacrypto case could shift the political calculus faster than the regulatory debate itself, particularly if prosecutors uncover new financial losses or bring additional charges.