Crypto Industry Scores Major Win, Poland’s President Defies EU MiCA Rules

• PM Tusk’s allies failed to override President Nawrocki’s veto, which has prevented MiCA from being integrated into Poland’s crypto regulations.
• One side argued that the proposed law was too restrictive, while the other aligned it with national security concerns over Russia.

The crypto industry recently scored a significant win in Poland, as the country’s Parliament failed to override a presidential veto that would have paved the way for the implementation of the European Union’s Markets in Crypto-Assets (MiCA) Regulation.

MiCA Implementation in Poland Fails to Gain Steam

According to Reuters, the Sejm, the Polish legislature’s lower chamber, failed to secure the three-fifths majority vote required to override President Karol Nawrocki’s rejection of the bill that has caused widespread division in the Polish crypto community. This means that Prime Minister Donald Tusk will have to restart the process in the Parliament all over again if he wants to align the nation’s digital asset regulations with EU standards.

Reasons for the Opposition

Nawrocki justified the veto on Monday, echoing concerns aired by most members of the crypto community. Previously, advocates in the space criticized the bill’s proposed measures for their restrictive rules and harsh penalties. The rules state that authorities could slap offenders with up to two years’ jail time and fines of up to 10 million Polish zlotys ($2.75 million at prevailing exchange rates) for each violation.

ADVERTISEMENTJanus Kowalski, a member of the Sejm, was one of the bill’s vocal critics. He claimed that the 118-page bill was overkill compared to those of other EU members that have embraced MiCA. He pointed out that the proposed provisions were considerably more extensive than Cyprus’s one-page legislation and even Germany’s 78-page legislation. Additionally, he called it an extra burden for over three million Poles who own crypto.

A Matter of National Security

On the other hand, Tusk rallied his allies in the Sejm, citing the issue as a matter of national security. He alleged that the Russian intelligence networks and crime syndicates have been capitalizing on the loose rules on digital assets to stealthily move money without triggering detection from regulators and law enforcement authorities. Hence, he urged them to support overturning the veto and avert illegal activities.

Meanwhile, some members of the crypto community favored the bill’s passage into law. They argued that it would be key to providing regulatory clarity for digital assets, an area where Poland has been lagging for years.

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