Polish president refuses to sign virtual asset regulation bill…clashes with government

Reports say the Polish president refused to sign a stringent bill regulating virtual assets (cryptocurrencies), escalating conflict with the government.

On the 2nd, according to crypto-focused media Cointelegraph, Karol Nawrocki, the Polish president, exercised his veto on the 'Crypto-Asset Market Act' recently passed by the parliament. The presidential office said in a statement, "The bill could threaten citizens' freedoms and property, and national stability."

The bill was proposed in June, and the virtual asset industry and some politicians have criticized the draft from the outset for being overly restrictive. In particular, Polish politician Tomasz Menchen had anticipated the president's refusal to sign the bill since it passed the parliament.

The industry largely welcomed the president's veto. However, the government immediately pushed back. Andrzej Domanski, the finance minister, wrote on X (formerly Twitter), "Already 20% of investors are suffering losses from illegal activities in the market," criticizing, "The president chose confusion." Foreign Minister Radosław Sikorski also said, "If the bubble bursts and thousands of citizens suffer losses, it will become clear who is responsible."

One of the main reasons the president vetoed the bill was a provision that would make it easy to block websites related to virtual assets. The presidential office pointed out, "The domain-blocking provision lacks transparency and is prone to abuse."

The office also cited that the bill is overly extensive and reduces regulatory clarity. The presidential office said, "A structure much more complex than those of the Czech Republic, Slovakia, and Hungary would lead to overregulation and could drive companies abroad." President Nawrocki added, "Excessive supervisory fees would constrain startup activity and would in fact favor only foreign companies and banks."