The Polish Sejm again failed on Friday to overturn President Karol Nawrocki’s veto of legislation regulating the crypto asset market, leaving legal uncertainties.
Second Veto Attempt Rejected
The Sejm voted 243 to 191, with three abstentions, to attempt to override the presidential veto. However, the 263 votes needed to reject the veto were not reached, resulting in the bill’s failure to pass.
This marks the second time the Sejm has been unable to override President Nawrocki’s veto on the crypto market bill. The President initially vetoed the legislation in early December of last year.
Arguments for and Against the Bill
The President’s office argued that the bill contained excessive regulations and did not incorporate necessary amendments proposed during the legislative process.
Government and coalition representatives contend that the absence of the law creates legal loopholes and hinders adequate consumer protection.
Purpose of the Crypto Asset Act
The aim of the crypto asset act was to implement the EU’s MiCA (The Markets in Crypto-Assets Regulation) concerning the crypto asset market.
The bill introduced supervisory measures to prevent violations by supervised entities, including granting the Polish Financial Supervision Authority (KNF) the power to suspend public offerings of crypto assets, interrupt their course, prohibit the commencement of a public offering, or ban the admission of crypto assets to trading.
Previous Legislative History
The Sejm initially passed the same bill in February of this year after the first veto. The President subsequently vetoed it again, leading to the current situation.
