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Polish crypto veto override fails by 25 votes amid scandal

Polish lawmakers fail to override veto on crypto oversight, falling 25 votes short.

  • Polish lawmakers failed to override President Karol Nawrocki’s veto of crypto oversight legislation, falling 25 votes short of the required supermajority.
  • The vetoed bill would have established Poland’s framework for EU’s MiCA regulation, including oversight by the Polish Financial Supervision Authority (KNF).
  • Prime Minister Donald Tusk cited an expanding criminal investigation into defunct exchange Zondacrypto to push for stricter rules.

Polish lawmakers on Friday again failed to secure the three-fifths majority needed to overturn President Karol Nawrocki’s veto of legislation designed to tighten oversight of the country’s crypto market. The Sejm voted 241-198 in favor of overriding the veto, falling 25 votes short of the required 266.

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President Nawrocki has vetoed the crypto legislation three times, arguing the proposed rules would overregulate the industry. The regulatory deadlock leaves Poland without a designated authority to supervise the cryptoasset market despite the European Union’s MiCA regulation already being in effect.

The vetoed legislation aimed to place oversight of the market under the Polish Financial Supervision Authority (KNF). KNF said Friday the country still lacks a designated supervisor.

Prime Minister Donald Tusk has cited an expanding criminal probe into the defunct crypto exchange Zondacrypto to push for tighter rules. Tusk disclosed excerpts of witness testimony alleging payments intended to influence politicians linked to the previous government.

The testimony alleged a 2 million Polish zloty ($550,000) payment arrangement involving a foundation linked to former Justice Minister Zbigniew Ziobro. Prosecutors are investigating suspected fraud and money laundering connected to Zondacrypto.

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In July, investigators merged the case with a probe into the 2022 disappearance of Sylwester Suszek, founder of BitBay. Prosecutors in April estimated losses linked to the exchange at no less than 350 million Polish zlotys ($95 million).

Zondacrypto’s operator, BB Trade Estonia, was officially declared bankrupt by an Estonian court in August. The first creditors’ meeting is scheduled for Sept. 17.

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