Poland’s Crypto Bill Blocked Again as Presidential Veto Holds and Zondacrypto Scandal Deepens
Polish lawmakers fell 25 votes short of overriding President Karol Nawrocki's third veto of crypto legislation, as Prime Minister Donald Tusk pushes for stronger oversight amid an expanding Zondacrypto exchange scandal involving estimated losses of $95 million.
Poland’s Crypto Bill Blocked Again by Presidential Veto
Poland’s lower house of parliament, the Sejm, failed to overturn President Karol Nawrocki’s veto of crypto legislation during a September 5 vote. According to the vote results, 241 lawmakers voted to support overriding the veto, with 198 opposed and three abstaining. The outcome fell 25 votes short of the 266-vote supermajority required under Poland’s constitutional procedures. This represents Nawrocki’s third veto of similar crypto regulatory bills, with the president repeatedly citing concerns that the proposed rules would impose excessive regulatory burdens on the industry.
The contested legislation aimed to create Poland’s implementation framework for the European Union’s Markets in Crypto-Assets Regulation (MiCA), transferring oversight of the crypto sector to Poland’s Financial Supervision Authority (KNF). According to the KNF’s public statements, Poland currently lacks a formally designated authority overseeing crypto markets despite MiCA already being in effect across the European Union. President Nawrocki has stated he supports crypto regulation generally, but argues that Poland’s proposed framework grants excessive government authority, particularly regarding regulatory costs and the power to block websites.
Zondacrypto Scandal Intensifies Calls for Regulation
Political dynamics have shifted due to the expanding Zondacrypto investigation. The defunct crypto exchange has become the focal point of a major scandal. According to Polish prosecutors, estimated losses connected to Zondacrypto amount to at least 350 million Polish zlotys (approximately $95 million). The exchange’s operator, Estonia-based BB Trade, received a bankruptcy declaration from an Estonian court in August, with the first creditors’ assembly scheduled for September 17.
Prime Minister Donald Tusk has leveraged the Zondacrypto crisis to advocate for stronger crypto oversight. Ahead of the parliamentary vote, Tusk released portions of testimony from what he characterized as a central witness in the Zondacrypto investigation. According to Tusk’s disclosures, the witness alleged a 2 million Polish zloty (approximately $550,000) financial arrangement involving a foundation connected to former Justice Minister Zbigniew Ziobro. The witness also allegedly stated that an individual promised to secure a presidential pardon if the witness faced conviction.
Polish prosecutors are investigating suspected fraud and money laundering linked to Zondacrypto. The investigation merged with an earlier probe into the 2022 disappearance of Sylwester Suszek, the founder of BitBay, which was subsequently renamed Zondacrypto. The inquiry has expanded beyond the exchange itself, with charges recently filed against the Polish Olympic chief as part of the probe. Poland now faces an uncertain regulatory landscape, compelled to adhere to EU crypto rules while lacking a fully implemented domestic framework. For the broader crypto market, Poland’s regulatory uncertainty could establish precedents influencing how other EU nations approach digital asset oversight, directly affecting platform compliance costs and market conditions across Europe.
Source: Polish Government, via Cointelegraph. Not financial advice.