The President of Poland has vetoed a controversial bill that aimed to set strict rules on the crypto assets market, following multiple concerns of a startup exodus, “overregulation” of the sector, and stifling market innovation.

Poland’s President Vetoes Divisive Crypto Bill

On Monday, Poland’s President Karol Nawrocki refused to sign a crypto market legislation over concerns that it could pose a real threat to the freedoms of Poles, the stability of the state, and market innovation.

In an official statement, the president’s office announced Nawrocki’s decision to veto the Crypto-Asset Market Act, introduced in June, to prevent “overregulation” and abuse of the “legal mess” proposed by the Polish government.

As reported by Bitcoinist, Poland’s crypto community previously raised concerns about the legislation in September, noting that the bill exceeded the European Union (EU)’s minimum regulatory requirements and could drive small businesses and startups abroad.

Notably, the bill’s text required all Crypto Asset Service Providers to obtain a license from the Polish Financial Supervision Authority (KNF) to operate in the market. It also proposed heavy fines and potential prison time for participants who breached the law.

Rafal Leśkiewicz, Press Secretary of the President, listed on X three main reasons for Nawrocki’s decision to reject the bill. He asserted that the legislation risks power abuse and overreach, as some provisions allow the government to shut down websites of companies offering crypto services “with a single click.”

“This is unacceptable. Most European Union countries use a simple list of warnings that protects consumers without blocking entire websites,” he noted.

In addition, the regulation’s size and lack of transparency risked overregulation, noting that countries like the Czech Republic, Slovakia, and Hungary implemented concise and comprehensive frameworks. Meanwhile, Poland’s text surpasses the one-hundred-page mark.

He argued that “Overregulation is a straight path to driving companies abroad—to the Czech Republic, Lithuania, or Malta—instead of creating conditions for them to earn money and pay taxes in Poland.”

Lastly, the Press Secretary listed the amount of supervisory fees as an issue, affirming that the government set them at a level that would have prevented small businesses and startups from developing, favoring foreign corporations and banks. To him, “this is a reversal of logic, killing the competitive market and posing a serious threat to innovation.”

Community Praises The ‘Necessary Decision’

Leśkiewicz emphasized that regulation is necessary, but added that it must oversee the market in a way that’s “reasonable, proportionate, and safe” for users, rather than overreaching and potentially harming the Polish economy.

“The government had two years to prepare a bill in line with the European MiCA regulation on the crypto-asset market in the European Union. Instead, it produced a legal mess that hurts Poles and Polish companies,” he asserted. “The decision to veto was necessary and was made responsibly. The president will defend the economic security of Poles.”

Polish economist Krzysztof Piech praised the president’s decision to veto the crypto bill, affirming that it was “a very bad law” that “violated the Polish Constitution and was contrary to the EU regulation it was supposed to implement in Poland.”

Piech also refuted claims that Poland will become a “paradise” for criminals and fraudsters, who will “be grateful” to President Nawrocki for “a crypto market without state supervision.”

The economist asserted that the government’s version of the bill “did not provide for any assistance to victims of fraudsters,” adding that, “as of July 1, 2026, the entire Polish market will be regulated and supervised — even without any legislation. After all, we are in the EU.”