Poland’s parliament has approved a new cryptocurrency law intended to align the domestic market with the EU’s MiCA framework. But critics argue Warsaw has gone far beyond what Brussels requires — and the result could stifle innovation and push companies abroad.

MiCA in Polish Style: Regulation or Repression?

On Friday, the lower house of parliament, the Sejm, voted on the Crypto Assets Act. A total of 230 MPs supported the bill, 196 opposed, and none abstained. The legislation now moves to the Senate.

The government says the goal is to “protect consumers from dishonest entities” and bring order to Poland’s crypto sector, one of the largest in Central and Eastern Europe. Deputy Finance Minister Jurand Drop argued the rules are essential, pointing out that 20% of investors report being victims of fraud.

The law introduces criminal liability for offering crypto services or issuing tokens without authorization. Oversight will be carried out by the Polish Financial Supervision Authority (KNF), which will monitor exchanges, service providers, and enforce compliance. Penalties include fines of up to 10 million złoty (about $120,000) and up to two years in prison.

Crypto Industry Warns: End of Smaller Firms

Critics say the bill is overregulation. Platforms must maintain individual client accounts, a requirement meant to protect funds but one that significantly raises operational costs.

The Polish outlet Bitcoin.pl warned that KNF is being given powers that resemble “a repressive apparatus rather than market supervision.” New fees and strict obligations, it added, will “suffocate innovation” and could wipe out smaller companies.

Signs of an exodus may already be appearing. XTB, one of Poland’s largest brokers, has signaled it may seek licensing in Cyprus. Other entrepreneurs warn Poland could lose its status as a regional crypto hub.

Jakub Bartoszek, CEO of crypto exchange service Cashify, said Poland’s implementation of MiCA is among the harshest in Europe:

“Entry costs are extremely high, and the barriers are multiplying. I hope the president will listen to the voice of the market and veto the law in its current form.”

Political Storm and Hope for a Veto

The controversy has spilled into politics. Opposition lawmakers and industry figures warn the law in its current form risks damaging Poland’s economy.

Bitcoin advocate and former presidential candidate Sławomir Mentzen also urged President Karol Nawrocki, who took office in August, to block the legislation.

Nawrocki has already hinted he may veto the bill — a move that would signal Poland is seeking a balance between aligning with EU regulations and supporting domestic innovation.

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