President's Veto Pits Market Freedom Against Government Oversight in Poland

Polish President Karol Nawrocki has vetoed the contentious "Cryptocurrency Market Regulation Act," rejecting a legislative framework that critics argued would stifle innovation and drive crypto startups abroad. The move, announced on Dec. 2, has sparked a sharp political divide, with the government condemning the decision as a rejection of necessary oversight while crypto advocates hailed it as a victory for market freedom. [The presidential office stated](https://www.lookonchain.com/feeds/38922) the bill's provisions "pose a genuine threat to Poles' freedom, property rights, and national stability," citing risks of abuse in domain-blocking powers and excessive regulatory complexity.

The veto highlights tensions between regulatory caution and industry growth. The president's office emphasized that the bill's length and complexity—far exceeding simpler frameworks in the Czech Republic or Hungary—could deter domestic startups in favor of foreign competitors [according to reports](https://cointelegraph.com/news/poland-president-veto-crypto-bill-political-clash). Supervisory fees under the act were also criticized for favoring established banks over emerging firms, [potentially stifling competition](https://cointelegraph.com/news/poland-president-veto-crypto-bill-political-clash). Meanwhile, Finance Minister Andrzej Domański accused the president of "choosing chaos," [warning that 20% of clients](https://www.tradingview.com/news/cointelegraph:1b45994da094b:0-poland-s-president-vetoes-strict-crypto-bill-clashes-with-government/) already face losses due to market abuses.

Internationally, Poland's decision contrasts with Japan's approach, where the government has backed a 20% flat tax on crypto profits, aligning it with stock trading rules. The Financial Services Agency (FSA) plans to introduce the reform in early 2026, [aiming to boost investor confidence](https://cointelegraph.com/news/japan-gov-backs-flat-tax-crypto-profits) by reducing tax rates from a top bracket of 45%. Similarly, the United Arab Emirates has taken steps to integrate crypto under central bank oversight, [with a new law requiring](https://www.coindesk.com/policy/2025/11/26/new-uae-sweeping-banking-decree-looks-to-cement-country-s-global-crypto-position) all blockchain operations to be licensed by the Central Bank of the UAE (CBUAE).

The EU's Markets in Crypto-Assets Regulation (MiCA), set to take effect in July 2026, may provide a counterbalance to Poland's internal debate. [Analysts note](https://www.tradingview.com/news/cointelegraph:1b45994da094b:0-poland-s-president-vetoes-strict-crypto-bill-clashes-with-government/) that MiCA's investor protections could mitigate concerns over unregulated crypto activities, reducing pressure on national governments to impose stricter rules. However, the Polish government's push for oversight remains rooted in fears of fraud and instability, with Deputy Prime Minister Radosław Sikorski warning that the veto could leave the market unregulated until MiCA's implementation [according to reports](https://cointelegraph.com/news/poland-president-veto-crypto-bill-political-clash).

As the political clash unfolds, the crypto industry in Poland faces a crossroads. While the president's stance reflects a commitment to fostering a competitive market, the government's emphasis on consumer protection underscores the global challenge of balancing innovation with risk management.