Poland’s Sejm officially began debating four competing cryptocurrency regulation bills on Tuesday, following President Karol Nawrocki’s two previous vetoes of earlier legislation. The proposals under consideration include drafts from the government, the president, the Poland 2050 party, and the Confederation party, with second readings scheduled for Thursday.
Key flashpoints include the Polish Financial Supervision Authority’s (KNF) power to block or freeze crypto accounts suspected of illicit activity, and the scale of fines for non-compliance. The government’s bill proposes a maximum penalty of 25 million PLN ($6.9 million), while the president’s version caps it at 20 million PLN ($5.5 million). Industry critics warn these measures could be disproportionate and stifle innovation.
In a dramatic twist, the opposition Law and Justice (PiS) party withdrew its support for the market regulation bill and on Monday submitted a separate legislative proposal to ban all cryptoasset activity in Poland. Sejm Speaker Włodzimierz Czarzasty stated that the parliament will first complete work on the four regulatory bills before considering the PiS ban proposal. Czarzasty also raised concerns about potential political financing from crypto entities, describing the situation as a “devil’s dance.”
The outcome of these debates is critical for Poland’s crypto ecosystem, which could either gain legal clarity and attract institutional investment under regulation, or face a ban forcing businesses to relocate to more favorable jurisdictions.
