The Crypto-Asset Market Act, which aims to align Poland with the European Union’s Markets in Crypto-Assets (MiCA) framework, now moves to the Senate for review in what has become one of Europe’s most contentious regulatory debates.
The Rocky Road to MiCA Implementation
The Crypto-Asset Market Act received 241 votes in favor and 183 against in the Sejm, Poland’s lower house. This marks the second time lawmakers have approved the identical bill, which the government resubmitted without any changes after the initial veto attempt failed.
The legislation’s journey has been turbulent. The bill first passed the Sejm in September 2024 and cleared the Senate in November. However, President Nawrocki vetoed it on December 2, stating its provisions “genuinely threaten the freedoms of Poles, their property, and the stability of the state.” When parliament attempted to override the veto on December 5, they fell 18 votes short of the required three-fifths majority.
Source: sejm
Poland now stands as the only EU member state without a domestic framework for implementing MiCA, which became fully effective across the European Union on December 30, 2024. Germany, Malta, the Netherlands, and Lithuania have already begun issuing crypto-asset service provider licenses under the new regulatory framework.
President’s Concerns Versus Government’s Security Push
President Nawrocki’s opposition centers on what he views as excessive regulatory burden. His main concern involves a provision allowing the Polish Financial Supervision Authority (KNF) to block cryptocurrency websites with minimal oversight. The president also criticized the bill’s length—over 100 pages—comparing it unfavorably to simpler MiCA implementations in neighboring countries like the Czech Republic, Slovakia, and Hungary.
Nawrocki warned that “overregulation is an easy way to drive companies to the Czech Republic, Lithuania or Malta, rather than create conditions for them to operate and pay taxes in Poland.” He also highlighted excessive supervisory fees that could prevent startup activity while favoring foreign corporations and banks.
Prime Minister Donald Tusk, however, has positioned the legislation as essential national security policy. During parliamentary debates, Tusk claimed that Poland’s crypto sector has been infiltrated by over 100 foreign entities, many from Russia, Belarus, and other former Soviet states. He argued that unregulated cryptocurrencies are being used by Russian intelligence services and organized crime groups for covert financing and sanctions evasion.
Finance Minister Andrzej Domański supported this position, noting that 20% of Polish crypto investors have already lost money to scams and fraud. Without proper regulation, he warned, consumers remain exposed to abuse in what he called a “Wild West” market.
What the Bill Actually Does
The Crypto-Asset Market Act would grant the KNF sweeping authority over Poland’s domestic crypto operations. The legislation requires all crypto service providers—including exchanges, custody services, and token issuers—to obtain CASP (Crypto-Asset Service Provider) licenses to operate legally.
Polish crypto industry representatives have criticized the bill as going far beyond MiCA’s baseline requirements. The CEO of Zondacrypto, one of Poland’s largest exchanges, called the legislation a “step backwards” that could criminalize legitimate blockchain development work.
The bill introduces strict capital requirements, licensing procedures, and reporting obligations. It also establishes criminal liability for providing crypto services without authorization. Critics warn these compliance costs could be prohibitive for smaller firms, potentially triggering an exodus of talent and capital to more crypto-friendly jurisdictions.
Poland’s Growing Crypto Market Caught in Limbo
Despite the regulatory uncertainty, Poland’s cryptocurrency market continues expanding rapidly. Chainalysis ranked Poland eighth in Europe for total cryptocurrency value received between July 2024 and June 2025, noting more than 50% year-over-year growth in transaction volumes. An estimated 7.9 million Poles—roughly one-fifth of the population—now use cryptocurrency.
Poland has also become the world’s fifth-largest Bitcoin ATM hub, overtaking El Salvador despite that country’s national Bitcoin adoption efforts. This combination of high usage and regulatory vacuum creates what experts call an “awkward vacuum,” where crypto companies operate in a gray zone and consumers face unclear protections.
The transitional period under MiCA allows Virtual Asset Service Providers (VASPs) registered before December 30, 2024, to continue operating under existing anti-money laundering rules until July 1, 2026. However, without a national implementing law, Polish companies cannot apply for the new CASP licenses needed for EU-wide operations.
What Happens Next
The Senate now holds the next critical step in this legislative process. If the upper house approves the bill, it returns to President Nawrocki’s desk. Government officials have suggested Nawrocki might sign it this time following a classified security briefing that provided him with “full knowledge” of the bill’s national security implications.
However, the president could veto the bill again. If he does, parliament would need another three-fifths majority to override—a threshold they failed to reach on December 5. Industry observers expect a contentious review process before any final Senate vote.
If Poland fails to designate a regulatory authority before the July 2026 deadline, crypto firms may be forced to register in other EU countries, potentially diverting significant tax revenues abroad. The passporting system under MiCA allows companies licensed in one EU country to operate throughout the entire bloc, making Poland’s regulatory gap increasingly problematic.
The Stakes for Poland’s Digital Future
The standoff between Nawrocki’s nationalist supporters and Tusk’s pro-EU coalition represents more than regulatory disagreement—it signals a fundamental clash over Poland’s approach to digital innovation versus security concerns.
Crypto advocates like Sławomir Mentzen, leader of the opposition Confederation party who campaigned on promises to create a strategic Bitcoin reserve for Poland, celebrated the initial veto as protecting innovation. Mentzen has promised to make Poland a “cryptocurrency haven” with friendly regulations, low taxes, and a supportive approach from banks and regulators if elected president.
Meanwhile, the government maintains that without proper oversight, Poland risks becoming a haven for money laundering, fraud, and hostile foreign influence. The timing is critical as MiCA’s staggered rollout means full compliance deadlines loom in 2025, and Poland risks falling permanently out of sync with the rest of the EU.
A Nation at the Crossroads
Poland’s crypto regulatory saga continues as the Senate prepares to weigh innovation against oversight. With millions of Polish crypto users in limbo and the country’s position as the EU’s lone MiCA holdout growing increasingly untenable, the coming weeks will determine whether Poland embraces strict regulation or charts a different course entirely.