Crypto law blocked: Polish president clashes with government over strict measures

Tension has risen in Warsaw after President Karol Nawrocki’s veto against a broad set of crypto rules. According to his allies, he prevents innovation from being slowed down. On the other hand, critics say that he is also propping up an unregulated market.

Complex law drives companies away

The denial revolves around the Crypto Asset Market Act. Critics see the rules package as so extensive that it would create more confusion than clarity. The president said in his statement that parts of the law would endanger “Poles’ freedoms, their property and the stability of the state.”

In June, the bill was passed through parliament with broad support. At the same time, concerns grew within the crypto sector. Politician Tomasz Mentzen already predicted that Nawrocki would not sign the law.

A sensitive point was the ability for authorities to block websites in the crypto market relatively easily. According to the president, these are substances that can be misused. As a result, he believes, they do not fit into an open digital climate. He also pointed out the length and complexity of the law. According to him, this would make companies more likely to choose countries such as the Czech Republic, Lithuania or Malta.

Nawrocki also spoke out against the high costs for supervision that the bill entailed. These could particularly deter startups and play into the hands of large international parties. According to him, this would weaken the competitive position and hinder innovation.

Strong criticism from the government

The veto immediately led to strong reactions from the government. Finance Minister Andrzej Domański wrote that “already twenty percent of clients are losing money due to abuses in this market.” According to him, the president has “chosen chaos” with his decision. Deputy Prime Minister and Foreign Minister Radosław Sikorski even warned that when “the bubble bursts and thousands of Poles lose their savings, they will know who is responsible.”

Crypto proponents, including economist Krzysztof Piech, dispute that image. They argue that the government must tackle existing fraud harder. In addition, they point to MiCA, the European regulatory package that must apply in all Member States from July 2026.

Nawrocki only just won the presidential elections in June. He was supported by many young voters who see him as a crypto-friendly choice. During his campaign, he explicitly presented himself as someone who wants to stimulate digital innovation. Moreover, he is reluctant to impose heavy regulations. His veto therefore fits in with the image of a president who believes that Poland should above all provide room for technological progress.