Poland’s parliament, the Sejm, failed on September 4 to overturn President Karol Nawrocki’s veto, leaving the country without a direct legal pathway for domestic crypto firms to obtain licenses under the European Union’s Markets in Crypto-Assets (MiCA) Regulation. This deadlock comes over two months after Poland’s MiCA transition period ended, creating a significant regulatory gap.
What does the failed vote mean for Polish crypto firms?
Lawmakers voted 241 in favor, 198 against, with three abstentions to re-enact the necessary legislation. However, this count fell short of the threshold required to override the presidential veto issued on June 11. Without this legislation, Poland has not designated the domestic authority needed to process standard MiCA applications. The Polish Financial Supervision Authority’s office has confirmed that authorization proceedings cannot begin until such a designation is legally made.
This situation leaves Polish-based crypto firms unable to start their licensing processes. Meanwhile, competitors already authorized elsewhere in the EU bloc retain a clear route into the Polish market. MiCA allows an authorized crypto-asset service provider to operate across member states through its home regulator, a process known as cross-border passporting. Polish regulators have confirmed this route remains open, enabling EU-licensed entities to notify their home regulator and begin operations in Poland.
Impact of MiCA’s Transition Period Expiry
The advantage for EU-authorized firms became more pronounced after July 1, when the maximum MiCA transition period expired. Companies can no longer rely on Poland’s previous virtual-currency activity register to continue operating. The Katowice Tax Administration Chamber stated that an entry on that register no longer provides authorization, and Polish regulators maintain that domestic law cannot extend the transition period.
This effectively closes the old regulatory route before Poland has opened the new one. While the distinction follows the service provider’s location rather than the owner’s nationality, a Polish crypto group could still reach domestic customers if it has an affiliate authorized elsewhere in the EU through the MiCA cross-border notification process. Firms relying solely on their old Polish registration, however, are now unable to operate legally.
This creates a strong incentive for Polish firms unwilling to wait for Warsaw to resolve the legislative issue to seek authorization in another EU member state where the MiCA licensing framework is already functional. For those remaining in Poland, access to customers hinges on lawmakers passing new legislation to designate a competent authority. Until then, their quickest path to market access may lie outside their home country.
Leave a Reply