Poland Stands Alone: EU’s Only Country Without Crypto Rules After Failed Vote

Poland has become the European Union’s only holdout on cryptocurrency regulation after lawmakers failed to overturn President Karol Nawrocki’s veto of a crucial crypto bill.

The December 5 parliamentary vote fell 18 votes short of the required three-fifths majority needed to override the presidential decision.

This political deadlock leaves Poland as the sole EU member state without a domestic framework for the Markets in Crypto-Assets (MiCA) regulation, which came into full effect at the end of December 2024.

The Battle Over Digital Assets

The failed override exposed deep political divisions between Prime Minister Donald Tusk’s pro-EU coalition and President Nawrocki’s nationalist base. Tusk positioned the Crypto-Asset Market Act as a national security requirement, arguing that digital assets were being used as funding channels for Russian intelligence services and organized crime.

President Nawrocki rejected this framing entirely. He vetoed the bill on December 1, stating its provisions “genuinely threaten the freedoms of Poles, their property, and the stability of the state.” His main concern centered on a provision that would allow the Polish Financial Supervision Authority (KNF) to block cryptocurrency websites with one click.

The president also criticized the bill’s complexity, noting it ran over 100 pages compared to much shorter implementations in neighboring countries like the Czech Republic and Slovakia.

Industry Divided on Regulation

The crypto industry offered mixed support for the legislation. Some groups pushed for regulatory clarity after years of uncertainty. However, others warned that the proposed framework went too far.

The CEO of Zondacrypto, one of Poland’s largest exchanges, called the bill a “step backwards” and warned it could criminalize legitimate blockchain development work. This lack of unified industry support weakened the political momentum Prime Minister Tusk needed to secure the override.

Crypto advocates like Sławomir Mentzen, leader of the opposition Confederation party who campaigned on promises to create a strategic Bitcoin reserve for Poland, celebrated the veto victory.

Europe Moves Forward Without Poland

While Poland struggles with internal political battles, other EU countries have embraced MiCA compliance. Germany, Malta, the Netherlands, and Lithuania have already begun issuing crypto-asset service provider licenses under the new framework.

The Netherlands and Malta issued their first licenses on December 30, 2024, the day MiCA took full effect. Germany followed shortly after in January 2025. More than 40 CASP licenses have been issued across EU member states since then.

This “passporting” system allows companies licensed in one EU country to operate throughout the entire bloc. Poland’s regulatory vacuum means its crypto companies cannot access this streamlined European market.

Thriving Market Without Rules

Despite the regulatory uncertainty, Poland’s crypto market continues to grow rapidly. Chainalysis ranked the country eighth in Europe for total cryptocurrency value received between July 2024 and June 2025, with transaction volumes rising more than 50% year-over-year.

An estimated 7.9 million Poles now use cryptocurrency, representing roughly one-fifth of the population according to Statista data. Poland has also become the world’s fifth-largest Bitcoin ATM hub, overtaking El Salvador despite that country’s national Bitcoin adoption efforts.

This combination of high usage and no regulatory framework creates what experts call an “awkward vacuum.” Crypto companies operate in a gray zone, consumers face unclear protections, and Poland loses ground while the rest of Europe moves in lockstep.

Starting From Scratch

The failed override vote wipes the legislative slate clean. Lawmakers must now restart the entire crypto lawmaking process from scratch, even as EU markets gear up for full MiCA enforcement.

The government has three possible paths forward. Parliament could attempt another override vote, though this appears unlikely given current political divisions. Alternatively, legislators could prepare a revised version addressing the president’s concerns about excessive regulation and website blocking powers.

The most probable scenario involves crafting new legislation that balances EU compliance requirements with the president’s demands for innovation-friendly policies.

Finance Minister Andrzej Domański condemned the veto, accusing the president of creating “chaos” in the crypto market. He warned that without proper regulation, consumers remain exposed to fraud, noting that one in five Polish crypto investors has already lost money to scams.

If Poland fails to designate a regulatory authority before July 2026, crypto firms may be forced to register elsewhere in the EU, potentially diverting significant tax revenues abroad.

Meanwhile, other EU regulators continue advancing their crypto oversight. Italy reminded virtual asset service providers they must meet MiCA compliance deadlines or shut down operations. European officials are also exploring whether a single bloc-wide supervisor, modeled after the U.S. Securities and Exchange Commission, could eventually oversee crypto exchanges.

A Digital Crossroads

Poland’s crypto standoff represents more than regulatory disagreement—it signals a fundamental clash over the country’s digital future. While government officials warn of consumer risks and EU compliance issues, the president has chosen to prioritize innovation and economic freedom over strict oversight.

This political deadlock will likely define Poland’s role in Europe’s evolving crypto landscape for years to come, leaving millions of Polish crypto users in regulatory limbo while the rest of Europe moves toward unified digital asset standards.