Poland’s Law and Justice (PiS) party submitted a total cryptocurrency ban to the Sejm on Tuesday, escalating a months-long regulatory standoff that has fractured the country’s political consensus on digital assets. The proposal came as the lower chamber began reviewing four competing crypto bills, following President Karol Nawrocki’s two vetoes of earlier legislation and a failed parliamentary attempt to override his rejection.
PiS Reversal Stuns Parliament After Months of Support
The PiS shift marks a dramatic reversal. The party previously backed crypto regulation but withdrew its original bill after four of its own MPs withdrew support, prompting Sejm Speaker Włodzimierz Czarzasty to call the maneuver “astonishing.” The timing coincides with escalating accusations from Prime Minister Donald Tusk, who alleged that Zondacrypto—a Polish crypto firm central to the debate—has Russian backing and financed politicians across PiS and the opposition Confederation party. No statement from PiS has explained the rationale for abandoning regulation in favor of an outright ban.
President’s Veto Deepens Regulatory Gridlock
President Nawrocki vetoed the earlier Crypto-Asset Market Act twice, citing concerns about overregulation and what his office termed a “legal mess.” Zbigniew Bogucki, head of the president’s office, denied opposition to crypto market development, framing the veto as protective rather than prohibitive. Yet Tusk’s team counters that Nawrocki was aware of the Zondacrypto controversy when he rejected the bill. Economist Krzysztof Piech argued the veto “violated the Polish Constitution and was contrary to EU regulation.” A parliamentary vote to override the veto failed last month.
Four Bills Compete on Enforcement and Penalties
The Sejm now weighs four separate proposals, differing primarily on Financial Supervision Authority powers and penalty structures. The government draft imposes maximum penalties of PLN 25 million ($6.9 million) for obstructing inspections, while the president’s draft caps penalties at PLN 20 million ($4.5 million). Confederation leader Sławomir Mentzen warned that new legislation under certain models would “destroy the Polish cryptocurrency market.” The second reading of all bills is scheduled for Thursday, May 14, though no timeline for a final vote has been announced.
Regulatory Clarity Remains Elusive
Poland’s crypto regulatory path remains unresolved. The global crypto market stands at $2.65 trillion, yet Poland has no coherent framework governing digital assets. Zondacrypto has not publicly responded to Russian backing allegations. Which of the four bills carries strongest parliamentary support is unclear. The next critical date is May 14, when the Sejm advances to second reading—but whether that vote occurs, and which proposal advances, depends on political alignments still in flux.
