Poland’s government is preparing to introduce a new cryptocurrency bill this week, as Prime Minister Donald Tusk seeks another attempt to regulate the country’s digital asset market after two earlier proposals were blocked by President Karol Nawrocki.
Tusk stated on Tuesday that the latest draft would largely mirror the previous versions but would include stronger penalties for individuals using cryptocurrency platforms to defraud investors or threaten state security. The aim of the legislation is to enhance oversight of crypto companies and align Poland with the European Union’s Markets in Crypto-Assets regulation, known as MiCA.
The planned legislation arrives amid a criminal investigation into Zondacrypto, one of Poland’s largest cryptocurrency exchanges. In April, prosecutors in Katowice opened a case involving accusations of fraud and money laundering. Reported losses have been estimated at around PLN 350 million (approximately EUR 82 million), with the potential for this figure to rise as the investigation proceeds.
Tusk mentioned that the government would submit the new draft to parliament by the week’s end, emphasizing that its focus would be on penalizing those who exploit inexperienced investors and pose risks to Polish state security.
New Draft Following Presidential Vetoes
The latest proposal is likely to spark further contention between Tusk’s centrist government and President Nawrocki, who is affiliated with the right-wing opposition Law and Justice party. Nawrocki previously vetoed two cryptocurrency bills, arguing that they imposed excessive regulations and raised concerns related to civil liberties.
These rejected drafts aimed to subject crypto platforms to the supervision of Poland’s Financial Supervision Authority (KNF). The government contended that heightened oversight was necessary to safeguard investors and ensure compliance with EU standards.
As of now, Nawrocki’s office has not made clear whether the president would back the revised version. His spokesman remarked that the government needs to provide the complete text of the bill before any assessment of the president’s stance can be made.
Poland remains one of the EU nations still working to fully implement rules associated with MiCA, designed to establish common standards for crypto service providers encompassing authorization, consumer protection, transparency, and market conduct.
Zondacrypto Investigation Intensifies Regulatory Pressure
The ongoing investigation into Zondacrypto has heightened the political debate. Polish prosecutors are scrutinizing allegations that customers faced issues withdrawing funds from the exchange and that the platform could have facilitated money laundering.
Zondacrypto’s CEO, Przemysław Kral, has denied any wrongdoing, asserting that the company is solvent while rejecting claims of ties to Russian intelligence as unfounded. However, reports have emerged that Kral has left Poland for Israel and possesses Israeli citizenship, potentially complicating any extradition processes. Additionally, amidst the investigation, the exchange’s founder, Sylwester Suszek, mysteriously vanished in 2022.
Speculations among Polish media have suggested that prosecutors are investigating a man known as “Maniek” as possibly being the true owner of Zondacrypto. Others have brought up discussions linking the platform to a Russian organized crime group, but these allegations are yet to be substantiated in court.
Tusk has previously warned that unregulated cryptocurrency channels have been used by Belarusian security services to support illegal migration routes into Poland, stating that crypto regulation is both a financial and national security concern.
MiCA Standards and Polish Framework
The government argues that the new cryptocurrency bill is essential to establish clear responsibilities for companies providing crypto services in Poland. Under the proposed changes, platforms would be directly supervised by the KNF and be required to comply with EU legal standards.
Supporters of the draft maintain that Poland requires stronger tools to combat fraud, protect retail investors, and monitor dubious financial flows. Conversely, critics caution that overly broad regulations could stifle innovation and burden legitimate businesses.
As parliamentary discussions approach, the focus will likely center on the extent of state intervention in regulating crypto platforms, particularly in light of the Zondacrypto case that has highlighted risks within the sector. The government assures that the new draft will largely retain the structure of the earlier bills, with the notable exception of increased penalties for fraudulent activities and actions deemed detrimental to national security.
The future of this bill hinges on whether the government can garner sufficient support in parliament and whether President Nawrocki chooses to endorse or dismiss the measure. Until a definitive new law is enacted, Poland’s cryptocurrency market will continue to operate under a transitional framework shaped by evolving EU standards.
