Key facts
- Polish lawmakers failed to override President Karol Nawrocki's veto of crypto legislation.
- The vetoed bill aimed to establish Poland's national framework for the EU's MiCA regulation.
- Zondacrypto's Estonian operator has been declared bankrupt.
- An expanding criminal investigation into Zondacrypto involves allegations of fraud, money laundering, and political influence.
- Estimated losses linked to Zondacrypto are at least 350 million Polish zlotys ($95 million).
Polish lawmakers have once again failed to gather the necessary majority to override President Karol Nawrocki’s veto of a bill intended to strengthen oversight of the country's cryptocurrency market. The Sejm, Poland's lower house, voted 241-198 in favor of overriding the veto, falling 25 votes short of the 266 required. This marks the third time President Nawrocki has vetoed such legislation, citing concerns that the proposed rules would overregulate the industry and grant authorities excessive powers, such as blocking websites.
The legislative stalemate occurs amidst a widening scandal involving the defunct crypto exchange Zondacrypto. Its Estonian operator, BB Trade Estonia, was officially declared bankrupt by an Estonian court in August. Prime Minister Donald Tusk has highlighted an expanding criminal investigation into Zondacrypto, revealing excerpts of witness testimony that allege payments and attempts to influence politicians connected to the previous government. One witness reportedly alleged a 2 million Polish zloty ($550,000) payment arrangement involving a foundation linked to former Justice Minister Zbigniew Ziobro, and another alleged a promise of a presidential pardon.
Polish prosecutors are investigating Zondacrypto for suspected fraud and money laundering. The case has been merged with a probe into the 2022 disappearance of Sylwester Suszek, the founder of BitBay, which was later rebranded as Zondacrypto. Losses associated with Zondacrypto are estimated to be at least 350 million Polish zlotys ($95 million). The Polish Financial Supervision Authority (KNF) stated that the country still lacks a designated authority to supervise the cryptoasset market, despite the EU's Markets in Crypto-Assets Regulation (MiCA) already being in effect across the bloc.