Poland Fails to Override Crypto Bill Veto as Zondacrypto Scandal Deepens

Poland's lower house of parliament, the Sejm, voted 241-198 on Friday to override President Karol Nawrocki's veto of crypto legislation, falling 25 votes short of the 266 needed. It marked the third time Nawrocki has vetoed the bill, which would establish Poland's national framework for applying the European Union's Markets in Crypto-Assets Regulation (MiCA) and place crypto market oversight under the Polish Financial Supervision Authority (KNF). Nawrocki has argued that the legislation would overregulate the industry, citing concerns over compliance costs and authorities' powers to block websites. KNF confirmed Friday that Poland still lacks a designated supervisor for the cryptoasset market, despite MiCA already being in force across the EU.

The vote came as the scandal surrounding defunct crypto exchange Zondacrypto escalated. The exchange's Estonian operator has been declared bankrupt, and Prime Minister Donald Tusk disclosed excerpts from witness testimony ahead of the vote alleging payments and efforts to influence politicians linked to Poland's previous government. Tusk said a key witness alleged a 2 million Polish zloty (approximately $550,000) payment arrangement involving a foundation tied to former Justice Minister Zbigniew Ziobro. In separate testimony, the witness claimed that an unnamed individual had promised to secure a presidential pardon if the witness were convicted. The Polish Olympic chief has also been charged in connection with the probe.

Polish prosecutors are investigating suspected fraud and money laundering tied to Zondacrypto. In July, they merged the case with an inquiry into the 2022 disappearance of Sylwester Suszek, founder of BitBay, which was later renamed Zondacrypto. Prosecutors stated in April that losses linked to the exchange were estimated at no less than significant sums, though the full figure was cut off in available reports. The expanding investigation has added urgency to Tusk's push for tighter crypto oversight, even as Nawrocki continues to resist the proposed legislation on the grounds that it imposes excessive regulatory burdens on the industry.