Poland’s President Vetoes MiCA Crypto Law: A Bold Stand Against Over-Regulation

Poland just slammed the brakes on Europe's crypto rulebook—and the industry's cheering.

President Andrzej Duda vetoed the Markets in Crypto-Assets (MiCA) framework this week, calling the EU's landmark legislation "excessive" and warning it could strangle innovation. The move throws a wrench into Brussels' plan for continent-wide crypto harmony.

Why Poland Pushed Back

Duda's office argues MiCA's compliance burdens are too heavy for startups. The law demands strict licensing, capital reserves, and consumer disclosures—standards that might work for big banks but could crush fledgling crypto firms. It's a classic clash between regulatory safety nets and the breakneck pace of digital finance.

The Ripple Effect

This veto isn't just a Polish problem. It exposes cracks in the EU's unified front, potentially encouraging other member states to question Brussels' one-size-fits-all approach. For crypto businesses, it creates temporary refuge—and longer-term uncertainty.

Poland's gamble highlights a global tension: regulators scrambling to control a market that's built to bypass them. The president's move is either a visionary defense of innovation or a reckless delay of inevitable rules—depending on which side of the ledger you stand.

One thing's clear: while traditional finance builds taller compliance walls, crypto keeps digging tunnels. Sometimes, a presidential pen is the best shovel.

Reasons for the Presidential Veto

The primary objection was the proposed powers granted to authorities, which would allow them to block websites associated with the crypto market. According to presidential spokesman Rafał Leśkiewicz, the draft legislation provided the capability for the government to “turn off crypto-asset company websites with a single click.”

Mr. Leśkiewicz stressed that such a risk was unacceptable, noting that “if the government cuts off the page, citizens lose access to their digital funds overnight. We cannot agree to such a risk.”

The second concern was the perceived “overregulation” of the 100-page document. The president contrasted the Polish bill with regulatory approaches in neighboring countries, stating, “Overregulation is an easy way to drive companies to the Czech Republic, Lithuania, or Malta instead of creating conditions for them to operate and pay taxes in Poland.” 

Finally, the veto highlighted high supervisory fees imposed on firms, which President Nawrocki asserted would hinder domestic innovation. He argued that the fees were set at a level that “will prevent the development of small companies and startups, and will favor foreign corporations and banks,” labeling the setup as “a perversion of logic, the killing of a competitive market, and a serious threat to innovation.”

The vetoed legislation had been developed by the Ministry of Finance to implement the European Union’s comprehensive MiCA regulation, which establishes a unified framework for crypto-asset markets across the bloc.

Political and economic fallout

Supporters of the bill, including the governing coalition, argued that the measures were necessary to protect consumers, citing data indicating that upwards of 18% of Poles have crypto investing experience and many have been victimized by fraud. The bill had cleared both the Sejm and Senate despite calls from some market participants and opposition figures to veto the bill because it would place an excessive burden on domestic firms.

The presidential veto means the law now returns to the Sejm, where it would require a three-fifths majority to be overturned—a threshold the current government coalition does not appear to possess. 

This leaves the Polish crypto-asset market without a designated supervising authority ahead of the crucial July 1, 2026, deadline for MiCA compliance across the EU. Deputy Finance Minister Jurand Drop had previously warned that without the law, domestic firms would be unable to register in Poland and would be forced to seek registration in other EU jurisdictions. 

This, he noted, would result in the loss of tax revenue and regulatory fees for Poland. Finance Minister Andrzej Domański reacted strongly to the veto, criticizing the president for choosing “chaos” and acting “against the clients and investors of the crypto-asset market,” stating that Polish citizens would now be left uniquely unprotected from scams in the EU.

The veto shows that there is a split in Polish economic policy, which pits the government’s declared ambition for investor protection and compliance with EU law against the president’s concerns about economic freedom, overreach, and the competition of Polish startups.

Also Read: KuCoin EU Secures MiCA License in Austria, Expands Across Europe