Polish Parliament Re-approves Crypto Act Amid Standoff Over EU MiCA Rules

On Thursday, December 18, 2025, the Polish Sejm, the lower house of the nation's legislature, approved the Crypto-Assets Market Act for a second time, sending the identical legislation back to the Senate for further review. This action highlights a significant political divergence between the governing coalition, headed by Prime Minister Donald Tusk, and President Karol Nawrocki, who took office on August 6, 2025, following his election victory in June 2025.

The bill's primary objective is to align Polish cryptocurrency regulations with the European Union's comprehensive Markets in Crypto-Assets Regulation (MiCA) framework, a necessary step for maintaining access to the wider European market. The re-passage was secured by a vote of 241 in favor to 183 against, using the exact text that President Nawrocki had previously vetoed in early December 2025. The government reintroduced the unmodified bill after its initial attempt to override the presidential veto failed to secure the required three-fifths majority.

This regulatory deadlock places Poland in a challenging position, as it risks being the only European Union member state without a domestic framework to meet the July 2026 deadline for full MiCA enforcement. The central dispute concerns the extent of regulatory authority granted to the Polish Financial Supervision Authority (KNF). Critics, including industry representatives and President Nawrocki, argue the bill grants the KNF powers exceeding the EU baseline, specifically citing provisions allowing for 'one click' website blocking and the imposition of substantial financial penalties potentially reaching millions of zloty. President Nawrocki had previously voiced concern that the legislation would threaten Polish freedoms and state stability, focusing on the opaque nature of the domain-blocking rules.

Conversely, government officials maintain the legislation is essential for national security and to prevent Polish crypto firms from being excluded from the EU-wide 'passporting regime,' which permits authorized entities to operate across all 27 member states. Deputy Finance Minister Jurand Drop warned that failing to comply by the July 2026 transition deadline would compel Polish crypto companies to register abroad, resulting in a loss of domestic tax revenue. The KNF is designated as the primary regulator under the proposed act, assuming responsibilities previously held by the National Revenue Administration (KAS).

The government has expressed confidence that the President will sign the bill into law following a classified security briefing, suggesting that Mr. Nawrocki now has 'full knowledge' of the national security implications associated with regulatory delay. This implementation lag in Poland contrasts with the varied transitional timelines adopted by other EU nations, such as the Netherlands and Finland, which opted for shorter grandfathering periods, while France chose the maximum 18 months. The final outcome now depends on the Senate's consideration, followed by a potential second presentation to the President, which will determine Poland's immediate standing as a fintech center.