Sejm Approves Expansion of Sanctions Toolkit

Poland's lower house of parliament, the Sejm, has passed a government-backed bill that broadens the country's existing sanctions regime and adds cryptocurrencies to the list of financial resources that authorities can freeze. The vote recorded 240 in favor, 202 against and one abstention, with the draft now moving to the upper chamber for further consideration.

The legislation aligns with the European Union's Markets in Crypto-Assets Regulation, which provides the framework for how crypto assets are defined and regulated across member states. It marks the first time Polish authorities will have clear authority to treat virtual currencies and tokens as financial instruments subject to sanctions enforcement.

Process for Listing and Enforcement

Under the new rules, the interior minister will oversee the national sanctions list. Decisions to designate individuals or entities on the list will take effect the day after publication. Those affected may challenge the measure in an administrative court, but enforcement of any associated asset freezes, including on crypto holdings, can begin immediately.

This mechanism allows authorities to act swiftly against potential risks while judicial review follows. The bill applies only to persons and entities added to the sanctions list, not to the broader crypto market.

Broadened Grounds for National Sanctions

Poland already maintains a sanctions framework under 2022 legislation aimed at countering support for Russia's invasion of Ukraine. The new measure expands those grounds to include serious foreign interference and information manipulation activities that threaten national security.

The updated rules move beyond geopolitical tensions to encompass a wider range of security concerns, while still requiring judicial oversight for final determinations.

Legislative Timeline and Next Steps

The Senate has 30 days to review, amend or reject the bill. If no action is taken within that period, Polish constitutional provisions state that the legislation is considered approved in its current form and will proceed to the president for signature. The Senate's vote represents the final parliamentary step before the measure becomes law.

Once enacted, the law will operate alongside European Union measures and implement a 2024 directive. It remains distinct from Poland's separate crypto-market licensing framework.