Poland Sejm Fails to Overturn Crypto Veto Amid Zondacrypto

Poland’s lower house of parliament on Friday failed to override President Karol Nawrocki’s veto on a bill to regulate the crypto market, voting 241-198 with three abstentions. The override needed a three-fifths majority of 266 votes and fell 25 short.

The draft law would have set a national framework to implement the EU’s Markets in Crypto-Assets Regulation (MiCA) and assigned supervision of crypto activities to the Polish Financial Supervision Authority (KNF). KNF noted that Poland currently has no single national supervisor for cryptoassets, even though MiCA is already in force across EU member states.

Nawrocki has vetoed similar proposals three times, arguing the bills would overregulate the sector, raise compliance costs and grant broad powers to authorities, including the ability to block websites. Prime Minister Donald Tusk pushed for the measure, citing the need for stronger oversight as an expanding criminal probe into Zondacrypto proceeds.

Tusk released excerpts from what he described as key witness testimony in the Zondacrypto investigation. The testimony alleges payments and attempts to influence politicians linked to the previous government, including a reported 2 million zloty payment arrangement involving a foundation associated with former Justice Minister Zbigniew Ziobro. The witness also alleged that a promise of a presidential pardon was offered if the witness were convicted. Prosecutors have not confirmed all details publicly as the inquiry continues.

Polish prosecutors are investigating suspected fraud and money laundering tied to the now-defunct exchange. In April they estimated losses in the case at no less than 350 million zlotys. In July investigators merged the Zondacrypto probe with a 2022 inquiry into the disappearance of Sylwester Suszek, founder of BitBay, which later operated as Zondacrypto. The Estonian company that ran the exchange, BB Trade Estonia, was declared bankrupt in August and its first creditors’ meeting is scheduled for Sept. 17.

Supporters of the vetoed bill argued a clear domestic framework and a designated MiCA supervisor would protect investors and allow Polish authorities to enforce EU rules consistently. Opponents and the president raised concerns about the bill’s scope, potential costs for businesses and the range of enforcement powers given to regulators.

Because the Sejm did not reach the required three-fifths majority, Nawrocki’s veto remains in effect and the draft law is blocked unless reintroduced and passed with a larger majority. The absence of a designated national supervisor leaves a gap between EU rules and Poland’s domestic enforcement arrangements.

The dispute over crypto oversight remains politically charged. Government officials call for tougher controls as criminal investigations proceed, while the president and some lawmakers oppose measures they say could impose heavy burdens on the industry. Investigations into Zondacrypto and the bankruptcy proceedings for BB Trade Estonia are ongoing and will be monitored by creditors and regulators.