Poland’s lower house of parliament failed on Friday to override President Karol Nawrocki’s veto of legislation that would have created a national framework for crypto-asset oversight. Lawmakers voted 241 in favor, 198 against and three abstentions. The tally fell 25 votes short of the 266 needed for a three-fifths majority among the 442 members present.

The outcome marks the third time the president has blocked similar measures. As a result, the Polish Financial Supervision Authority, known as the KNF, confirmed that the country still lacks a designated institution responsible for supervising the cryptoasset sector even though the European Union’s Markets in Crypto-Assets Regulation already applies across the bloc.

Vote Details and Legislative Stalemate

The bill sought to place crypto market supervision under the KNF and set out licensing, reporting and enforcement rules aligned with the EU framework. An override would have required the president to sign the legislation into law. With the motion defeated, the current version cannot advance.

President Nawrocki has maintained that he supports crypto regulation but regards the government’s proposals as excessively restrictive. He has cited concerns over compliance costs for firms and provisions that would grant authorities powers to block access to certain websites. He has argued that such rules risk pushing legitimate businesses to operate from other jurisdictions.

Nawrocki previously submitted an alternative proposal that his office described as offering stronger protections against fraud without imposing comparable burdens. Parliament has not advanced that version.

Regulatory Gap Under EU Rules

Although MiCA is already in force throughout the European Union, member states remain responsible for designating national supervisors, handling licensing and conducting enforcement. Without a formally assigned authority in Poland, the KNF has warned that the domestic market continues to operate without a clear supervisory mandate.

Earlier override attempts also failed to reach the required threshold. The first veto, issued in December 2025, was followed by a shortfall of votes days later. A second veto in February 2026 produced a similar result in April. Competing drafts from the government, the president’s office and other parliamentary groups have differed mainly on the scope of the KNF’s enforcement powers and the size of potential penalties.

Zondacrypto Investigation Adds Pressure

The parliamentary debate unfolded against the backdrop of an expanding criminal investigation into the defunct exchange Zondacrypto. Prime Minister Donald Tusk urged lawmakers to support the override and presented excerpts he described as testimony from a key witness. The statements alleged financial arrangements involving a foundation linked to former Justice Minister Zbigniew Ziobro and claims of political influence connected to the previous government.

According to the excerpts cited by Tusk, the witness described a payment of 2 million Polish zlotys, equivalent to approximately $550,000, routed through that foundation. Separate testimony allegedly referred to an offer to secure a presidential pardon in the event of a conviction. Tusk accused opposition lawmakers of supporting individuals connected to questionable crypto activities.

Prosecutors are examining suspected fraud and money laundering linked to Zondacrypto. In July they combined the inquiry with a 2022 investigation into the disappearance of Sylwester Suszek, founder of BitBay, the platform later rebranded as Zondacrypto. Authorities previously estimated losses associated with the exchange at no less than 350 million Polish zlotys, or about $95 million.

The Estonian operator of Zondacrypto, BB Trade Estonia, was declared bankrupt by an Estonian court in August. The first creditors’ meeting is scheduled for September 17. Nawrocki has rejected any personal connection to the company, stating that he never met its chief executive or representatives and possessed no information indicating support for his presidential campaign.

The continued absence of a designated national supervisor leaves Poland’s crypto market without the institutional structure that other EU member states have already established for implementing MiCA. Lawmakers may now consider whether to revise the legislation to address the president’s stated objections or pursue an alternative route to assign supervisory responsibility.