Polish President Vetoes Crypto-Asset Market Act, Citing Threats to Freedoms and Innovation
Poland’s President Karol Nawrocki vetoed the proposed “Crypto-Asset Market Act,” arguing the bill granted overly broad powers that could undermine civil liberties, property rights and economic stability. The law — approved by the Sejm in September and intended to align Poland with the EU’s MiCA framework — would have allowed authorities to block or disable cryptocurrency-related websites, imposed high regulatory fees, and created complex, wide-ranging oversight measures. Nawrocki warned the provisions risked abuse, stifling legitimate businesses and pushing startups abroad to more favourable EU jurisdictions such as the Czech Republic, Lithuania or Malta. Ruling coalition officials defended the bill as necessary for consumer protection and warned that without a designated supervisor required by MiCA, Polish firms might be unable to register domestically after July 1, 2026, potentially triggering an industry exodus and loss of tax revenue. Reactions were mixed: some crypto advocates and opposition figures praised the veto as protective of the domestic market, while others argued the legislation would have clarified a fragmented sector. The veto sets up a political standoff with implications for Poland’s regulatory approach ahead of the EU-wide MiCA rules taking effect in mid-2026.
Neutral
The veto creates short-term regulatory uncertainty but does not directly tighten or loosen EU-wide rules — MiCA will take effect across member states in mid-2026. In the short term, the decision may cause volatility for Poland-focused crypto services and local trading volumes as firms reassess operating plans; potential outcomes include firms delaying registration or considering relocation, which could be negative for onshore liquidity and services. However, because the veto blocks an arguably overreaching national law, it reduces the risk of immediate heavy-handed restrictions that might have driven a faster market contraction. Medium to long-term impact is likely muted: MiCA will provide a common EU framework that supersedes national divergence, offering clearer operating rules and investor protections. Traders should watch for subsequent legislative moves by Poland’s parliament, any emergency measures to establish a national supervisor ahead of the MiCA deadline, and announcements from major exchanges or custodians about market access. Comparable events: national-level regulatory backtracks (e.g., some EU states rolling back or pausing strict local crypto rules) typically cause a brief market reaction localized to the affected jurisdiction but do not alter broader market trends if regional regulation proceeds. Overall, expect local disruption and headline-driven volatility, but not a sustained bullish or bearish shift for global crypto markets.