Polish President Vetoes Crypto‑Asset Market Act, Citing Threats to Freedom and Startup Flight
Poland’s President Karol Nawrocki vetoed the Crypto‑Asset Market Act on December 1, 2025, arguing the bill would threaten individual freedoms, property rights and national stability. The proposed law would have granted the Polish Financial Supervision Authority (KNF) broad powers over crypto firms, including enforcement penalties, criminal liability, authority to block crypto websites and high supervisory fees. The president warned domain‑blocking powers could let regulators disable crypto firms’ websites “with a single click” and said the bill’s complexity and cost structure would favour large banks and foreign firms while stifling startups. Finance Minister Andrzej Domański defended the measure as necessary for investor protection and said the veto could create market disruption. Supporters of a lighter approach pointed to the EU Markets in Crypto‑Assets (MiCA) regulation — due to take effect July 1, 2026 — as a more balanced framework that should provide investor safeguards without severe national restrictions. The veto underscores regulatory uncertainty in Poland, highlights political scrutiny of heavy‑handed crypto controls, and raises the risk that on‑chain and off‑chain service providers could face sudden access or domain restrictions if similar provisions are reintroduced. Traders should watch for follow‑up legislation, KNF guidance, and potential shifts in firm domiciles, as these developments may affect liquidity, custody services and regional market confidence.
Neutral
The veto creates regulatory uncertainty but is not a direct ban on cryptocurrencies or trading. Short‑term effects: neutral to slightly negative — markets may see localized volatility for Polish exchanges, custody providers and firms with Polish operations as traders reassess operational risk and liquidity in the region. News of high supervisory fees and domain‑blocking powers had increased perceived enforcement risk; the veto removes that immediate threat but keeps the risk alive if Parliament reintroduces similar measures. Long‑term effects: also neutral to mixed — if follow‑on legislation is softened (or MiCA provides sufficient EU‑level clarity), confidence could recover and reduce relocation pressure on startups. Conversely, if Poland later adopts strict controls, that would be bearish for firms operating there. Overall, the announcement reduces an extreme downside scenario (immediate heavy national enforcement) but maintains regulatory uncertainty — a neutral net impact on crypto prices generally, with localized operational risks for firms exposed to Polish jurisdiction.