Poland’s President Karol Nawrocki rejected a significant cryptocurrency legislation citing concerns over its potential to limit innovation and infringe on freedoms.
Nawrocki’s veto of the Crypto-Asset Market Act was described as a pivotal moment, invoking mixed reactions across the political spectrum. He stated that the bill’s stipulations seriously jeopardized the liberties of the Polish people, their property rights, and the nation’s stability, according to a statement released by his office.
The proposed bill had faced criticism from many, including politician Tomasz Mentzen, who anticipated the veto during its passage through parliament. Supporters of the veto celebrated it as a major victory for the crypto sector, while detractors accused the president of fostering instability and neglecting his responsibilities.
Reasons for the Veto
The veto was primarily influenced by a provision that allowed authorities to block crypto-related websites easily.
Nawrocki’s office argued that such laws lack transparency and may lead to misuse. In addition, the bill’s complexity and lengthy provisions were criticized for their potential to create excessive regulation, especially when compared to more straightforward frameworks in neighboring countries like the Czech Republic and Slovakia.
He pointed out that an overregulated environment could drive companies to operate from countries with more favorable conditions such as the Czech Republic and Malta.
Response from Critics
High-ranking officials, including Finance Minister Andrzej Domański and Deputy Prime Minister Radosław Sikorski, were quick to express their discontent with the veto. Domański highlighted on social media that numerous clients are already experiencing financial losses due to market abuses and accused the president of “choosing chaos.”
Sikorski supported this sentiment, arguing the bill aimed to enhance regulation in the crypto sector, and warned that failure to act could lead to significant losses for average Poles.
Cryptocurrency advocates, including economist Krzysztof Piech, countered that the president should not be blamed for failures to regulate unruly practices effectively. He also noted forthcoming investor protections due to the European Union’s MiCA regulation set to be implemented by July 1, 2026.
