Poland's cryptocurrency regulation remains stalled after lawmakers failed to overturn President Karol Nawrocki's third veto of the legislation.

The Sejm voted Friday to override the veto, but supporters fell 25 votes short of the required three-fifths majority. Of the 442 lawmakers present, 241 backed the motion, while 198 opposed it and three abstained. The three-fifths override threshold is set by Poland's constitution, meaning a bill vetoed by the president cannot become law unless the Sejm and Senate gather broad cross-party support that the governing coalition has so far been unable to secure.

Lawmakers Fall Short of Override Threshold

According to a report by Polish Radio, the outcome prevents the cryptocurrency regulation bill from advancing after months of political disagreement over Poland's digital asset framework. The proposed legislation would have placed the domestic crypto market under the Polish Financial Supervision Authority (KNF).

Under the proposed framework, the KNF would oversee crypto-asset service providers, licensing requirements, reporting obligations, and regulatory compliance across Poland's digital asset market.

President Nawrocki has repeatedly argued, however, that the government-backed proposal places excessive regulatory burdens on legitimate crypto businesses. He has also warned that stricter requirements could push Polish companies to relocate their operations elsewhere.

Nawrocki had previously submitted 16 proposed amendments, but lawmakers adopted only one. As a result, disputes over regulatory powers, penalties, and compliance costs have continued to stall the legislation.

The defeat follows two earlier failed attempts to overturn presidential vetoes. Nawrocki rejected an initial bill in December 2025 and vetoed a revised version in February 2026. Lawmakers could still introduce fresh legislation incorporating the president's amendments, but that would restart the parliamentary process.

MiCA Implementation Remains Unresolved

The legislative deadlock creates additional uncertainty for Poland's cryptocurrency industry as the European Union's Markets in Crypto-Assets (MiCA) framework takes effect.

MiCA establishes common regulatory standards across the European Union, while national authorities remain responsible for licensing, supervision, and enforcement. Poland's lack of a fully functioning domestic licensing framework therefore leaves local crypto businesses facing difficult regulatory choices.

According to industry and regulatory estimates, around 2,000 virtual asset service providers operate in Poland, while only a small number have secured MiCA authorization elsewhere in Europe.

Companies can instead seek licenses in countries such as Lithuania, Latvia, or Germany. Once authorized, eligible firms can use MiCA passporting rules to provide services across the wider European Economic Area.

Moreover, the EU transition period ended on July 1, increasing pressure on firms that still lack appropriate authorization. The continuing Polish stalemate could therefore encourage more businesses to pursue regulatory approval abroad.

Zondacrypto Case Intensifies Political Dispute

The parliamentary vote also unfolded against the backdrop of an investigation involving collapsed cryptocurrency exchange Zondacrypto.

Prime Minister Donald Tusk urged lawmakers to support the override and cited witness testimony concerning former Justice Minister Zbigniew Ziobro. The allegations remain part of an ongoing investigation and have not been established as court findings.

Poland has separately requested Ziobro's extradition from the United States. The request reportedly concerns 19 of 26 alleged offenses linked to his conduct while in government.

Meanwhile, Nawrocki has denied links to Zondacrypto and rejected suggestions that the company supported his presidential campaign.

With the third veto remaining intact, Poland's crypto regulatory framework now faces another period of uncertainty, leaving domestic firms without a clear MiCA licensing route while the Zondacrypto investigation adds political pressure to the dispute.