President of Poland Karol Navrotsky vetoed for the third time a bill on crypto regulation, which was supposed to bring national legislation into line with the EU-wide regulation MiCA. The Polish Sejm approved the document in May, but the president said that the government had ignored his office’s recommendations - of the 16 proposed amendments, only one was taken into account. Navrotsky emphasized that the law focuses on combating shadow cryptoeconomics, rather than protecting consumers and supporting innovation.

If Poland does not bring its legislation into line with MiCA by 1 July, Polish crypto companies will lose the ability to operate in other EU countries and will be forced to relocate their business to other jurisdictions. The MiCA license allows companies to trade freely throughout the European market without additional registration. For the first time, Naurotsky rejected the bill back in December, when he criticized the excessive powers of the Financial Supervisory Authority (KNF), including the possibility of blocking crypto-company websites without clear criteria.

The political conflict between the president and the government escalated amid the collapse of Poland’s largest crypto-mining company, Zondacrypto, which was linked to a Russian criminal group. The government insists on a swift entry into force of the law, but Navrotsky remains adamant: A bad law passed a hundred times remains a bad law. The bill will be signed if amended.