# Passive Rewards in Jeopardy: Poland’s Crypto Law Stalemate Threatens Green Crypto Ecosystem
As the world shifts towards a more sustainable and eco-friendly approach to cryptocurrency, Poland’s delay in implementing the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework is causing concern among local companies and environmentalists alike. The lack of a clear regulatory framework is not only hindering the growth of the crypto industry in Poland but also pushing companies to consider relocating abroad, which could have a negative impact on the country’s green crypto ecosystem.
The Polish parliament’s failure to pass a domestic enabling act for the EU’s crypto regulations has created uncertainty and instability in the market. The president’s veto on a key crypto regulation bill, citing excessive regulation that could harm small businesses, has sparked a debate about the need for a balanced approach to regulation. While some argue that the lack of framework makes the Polish market vulnerable to fraud and illicit activities, others believe that overregulation could stifle innovation and drive companies away.
The consequences of Poland’s crypto law stalemate are far-reaching. With the deadline for the transitionary period ending on July 1, local companies are facing increasing pressure to adapt to the new regulatory environment. If a solution is not found, it will become impossible for them to operate competitively in Europe, leading to a potential exodus of crypto firms from the country. This could have a devastating impact on Poland’s green crypto ecosystem, as companies that prioritize sustainability and environmental responsibility may be forced to relocate to more crypto-friendly jurisdictions.
Crypto industry, Polish president claim bill is burdensome
The Warsaw Enterprise Institute, a business-focused think tank, has expressed concerns about the length and complexity of the proposed crypto regulation bill. The institute argues that the bill introduces unnecessary restrictions, such as a ban on marketing activities related to basic cryptocurrencies and the possibility of blocking websites without the right to appeal to a court. These measures could put Polish companies at a competitive disadvantage compared to their counterparts in other EU countries.
The role of the Polish Financial Supervision Authority (KNF) in regulating the crypto market has also been a subject of controversy. The KNF would have the power to levy heavy fines and maintain a blacklist of “unreliable” crypto domains, which could lead to censorship and stifling of innovation. Moreover, the KNF’s slow authorization times and limited experience in regulating the crypto market have raised concerns about its ability to effectively oversee the industry.
As the battle over the crypto bill continues, it is becoming increasingly clear that Poland’s political class is deeply split on the issue of crypto regulation. While some politicians argue that crypto should be brought into a normal legal framework, others view it as a suspicious sector that requires strict regulation. The controversy surrounding the Zonda Crypto exchange, which has been accused of illicit funding and ties to Russian criminal networks, has further complicated the debate.
For companies in Poland, the clock is ticking. With the MiCA transitional period ending on July 1, the lack of a clear regulatory framework is already causing companies to consider relocating abroad. Crypto exchange Kanga is considering a move to Latvia, which offers a MiCA-friendly regime and faster procedures. Other companies are also exploring options in the Czech Republic, Lithuania, or Malta, which could lead to a brain drain and a loss of talent and innovation in Poland’s green crypto ecosystem.
The Polish Chamber of Commerce for Blockchain and New Technologies has warned that overregulation could push companies abroad, resulting in a loss of tax revenue and economic growth for the country. The Chancellery of the President has also raised the alarm, stating that overregulation is a guaranteed way to push companies abroad, rather than creating conditions for them to operate and pay taxes in Poland.
As the deadline for the MiCA transitional period approaches, it is essential for Poland’s policymakers to find a balanced approach to crypto regulation that prioritizes sustainability, innovation, and environmental responsibility. The future of Poland’s green crypto ecosystem depends on it.
Not only would the KNF be incredibly powerful, but it is already notoriously slow. According to a payment institution peer review by the European Banking Authority, the KNF’s authorization times were the slowest in Europe. In an October letter, the Warsaw Enterprise Institute claimed that the KNF has only issued two licenses for brokerage houses in the last 10 years. In the same time period, it has only issued one electronic money institution license, while Lithuania has registered over 100.
Related: EU crypto firms turn to legal support as deadline for MiCA compliance nears
On Dec. 1, 2025, Nawrocki vetoed the law, citing bloated regulation. The government failed to override the veto, and then reintroduced the exact same bill. Nawrocki vetoed the bill for a second time in February, and on April 17, the Sejm repeated itself in failing to overrule the veto.
Polish parliament struggles to find path forward for MiCA
The battle over the crypto bill shows no signs of stopping.
Firstly, for Nawrocki, passing the bill after being reintroduced in the same form would have presented a political problem.
Piech told Cointelegraph, “Once the president had already argued that the bill breached constitutional principles and contained excessive, disproportionate and vague provisions […] signing a near-identical version would have meant contradicting his own stated reasoning.”
“In that sense, the second push looked less like compromise and more like an attempt to pressure the president into a constitutional U-turn.”
Some in the crypto industry hailed the veto as Nawrocki sticking to his pro-crypto, sound regulatory principles.
“The veto is not anti-regulatory, it brings common sense back into the law-making process. […] The industry did not ask for privileges. It asked for proportionality,” said Sławomir Zawadzki, co-CEO of Kanga Exchange.
Different coalitions and groups have attempted to introduce their own versions. According to Piech, Finance Minister Andrzej Domański said that the government started work yesterday on solutions for a new crypto-asset bill.
In December, after the first veto, the Polska 2050 political party announced “an improved draft that is a step forward from the President’s arguments, which, although far-fetched, are perhaps worth considering.”
Nawrocki himself has said he would submit a draft but the speaker in the Sejm has blocked the introduction of presidential proposals.
The Confederation of Liberty and Independence and the Law and Justice have filed versions, while another political coalition, the Center Club, announced it would prepare another draft.
Overall, Poland’s political class is “still deeply split on crypto.”
“This is no longer just a technical argument about implementing MiCA. It has become a broader fight over whether crypto should be brought into a normal legal framework, or treated as a politically suspicious sector that can be overregulated, stigmatised or used as a proxy battlefield after the Zonda Crypto controversy,” he said.
Polish Prime Minister Donald Tusk, himself a member of the Civic Coalition, has accused local exchange Zonda Crypto of illicit funding and ties to Russian criminal networks. It has undergone a funding crisis, pausing withdrawals, and has reportedly lobbied against the bill.
Related: Zonda exchange says 4.5K BTC wallet inaccessible amid withdrawal crisis
Tusk also claimed that it “sponsors political and social events in Poland and promotes very specific political forces,” including the opposition far-right Law and Justice party, of which Nawrocki is a member.
Zonda Crypto did not respond to Cointelegraph’s request for comment.
Polish crypto companies look abroad
For companies in Poland, passing a new law by the end of the MiCA transitional period on July 1 may be a case of shutting the barn doors after the horses have bolted.
Said Piech, “A new law may still matter institutionally, especially for banks and larger financial institutions that may want to enter crypto once there is a clear legal path. But for all existing Polish crypto firms, it is already very late.”
Some domestic crypto firms are already looking abroad. Crypto exchange Kanga is considering a move to Latvia, “a country whose representatives have openly used conferences in Poland to attract crypto firms, offering a MiCA-friendly regime, faster procedures and relatively low supervisory fees,” per Piech.
Robert Wojciechowski, president of the Polish Chamber of Commerce for Blockchain and New Technologies, said, “Since we founded the chamber, about 70-80 percent of companies have sailed abroad. Now my colleagues say they are talking to the Czech Republic to move their business there.”
The Chancellery of the President has itself raised the alarm, stating that, “Overregulation is a guaranteed way to push companies abroad — to the Czech Republic, Lithuania or Malta — instead of creating conditions for them to operate and pay taxes in Poland.”
Zonda Crypto CEO Przemysław Kral has previously told Cointelegraph, “Although we are a company with Polish roots and the largest player in the crypto industry on the Polish market, we have been operating outside Poland for years.”
“We are confident that we will remain a key player on the market. However, many small Polish crypto companies will lose the opportunity to operate on the market,” he said.
Now it’s a race against the clock, as July 1 draws closer. Piech doesn’t see a “realistic chance” for a bill to pass, and if it doesn’t, “domestic firms without a functioning Polish route are left at a structural disadvantage.”
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