Polish Legislature Upholds Crypto Veto, Defying Premier’s Security Plea

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Poland’s government could not muster the votes on Friday to override a presidential veto of legislation meant to regulate digital assets. This setback stalls efforts to impose greater oversight on a sector authorities describe as rife with money laundering and vulnerable to infiltration by Russian spies.

The dispute over the crypto legislation marks another episode in the acrimonious standoff between the liberal prime minister and the nationalist president. It unfolds against a backdrop of what Warsaw declares is an escalating threat from its eastern neighbor.

“This market is undoubtedly highly vulnerable to use by foreign services, intelligence agencies, and criminal groups,” Prime Minister Donald Tusk warned parliament. “The state’s task is to equip itself with instruments so it is not powerless.”

Tusk first briefed lawmakers in a confidential sitting concerning urgent national security matters. Later, on social media, he framed the unsuccessful vote as a choice between “Russian money and services versus the security of the state and its people.”

The vetoed bill aimed to enact the EU’s Markets in Crypto-Assets Regulation (MiCA). It would have granted Poland’s financial watchdog authority to supervise the cryptocurrency market and established criminal penalties for violations in token issuance or crypto-asset service provision.