Warsaw, Poland — Polish lawmakers have approved new cryptocurrency regulations to bring the country in line with European Union standards, a move accelerated by an ongoing major fraud investigation into one of the nation's largest crypto exchanges.

The lower house of parliament, the Sejm, passed the legislation in a 241-200 vote on Friday. The bill implements core elements of the EU's Markets in Crypto-Assets (MiCA) regulation, which sets a July 2026 deadline for member states. Poland had fallen behind after the president vetoed two earlier versions.

Stronger Oversight for Crypto Firms

The new rules give the Polish Financial Supervision Authority (KNF) expanded authority to monitor crypto businesses, issue fines up to 25 million zlotys, and take swift action such as temporary account blocks when necessary. The legislation combines elements from multiple proposals discussed in parliament.

Industry observers note that over 1,400 crypto-related entities in Poland now face a clearer but stricter operating environment. Without these measures, local firms risked losing access to EU-wide licensing after the MiCA transition period ends.

Zondacrypto Scandal Adds Pressure

The timing of the vote coincides with a high-profile criminal probe into Zondacrypto, formerly one of Poland's leading crypto platforms. Users have been unable to withdraw funds, with reported losses surpassing 350 million zlotys (approximately $96 million). Authorities have received more than 1,500 complaints.

Prime Minister Donald Tusk has described the exchange's background as concerning, citing possible links to foreign interests and past sponsorship of events connected to opposition figures. The founder disappeared in 2022, and the current leadership faces questions over operations in Israel and potential money laundering.

Opposition lawmakers from the Law and Justice party pushed for even tougher measures, including debate on a full sector ban, though that proposal was set aside for now. Parliamentary discussions have grown heated, with references to political financing and external influence.

The bill now moves forward for further review. President Karol Nawrocki, who previously vetoed similar proposals favoring lighter rules for businesses, must decide on the latest version. A third veto would prolong uncertainty in the sector.

This development reflects wider European efforts to balance innovation with stronger consumer safeguards and financial stability. In Poland, however, the process has become intertwined with domestic politics and security concerns.