Poland passes MiCA crypto bill as $96 million Zondacrypto probe deepens: report

Polish lawmakers on Friday approved a government-backed bill to regulate the domestic digital asset market, moving to finalize the country’s legal framework as a multimillion-dollar exchange collapse intensifies political friction in Warsaw.

The bill implements the European Union’s Markets in Crypto-Assets Regulation, or MiCA, which Poland must adopt by July or risk domestic firms losing authorization to provide crypto-asset services, according to the country’s financial watchdog, Reuters reported on Friday.

The parliamentary adoption comes as Polish prosecutors pursue a fraud probe into Zondacrypto, the country’s largest digital asset exchange, where thousands of users have been unable to withdraw funds and total losses are estimated at more than 350 million zlotys ($95.93 million).

In April, Polish Prime Minister Donald Tusk said the exchange involved Russian mafia money and Russian secret services. Tusk also told a government meeting earlier this month, citing Polish security services, that "it's the Russian mafia and its money involved in organising the Zondacrypto exchange."

Political uncertainty 

Poland’s legislation faces continued political uncertainty after President Karol Nawrocki previously vetoed two earlier crypto regulatory bills backed by Tusk’s government. Nawrocki argued the proposals imposed excessive burdens on crypto firms and risked driving companies out of Poland.

Notably, the bill adopted on Friday was among four cryptoasset proposals the parliament's Sejm chamber began debating on Tuesday, May 12. The other three came from Nawrocki, the Poland 2050 party, and the Confederation party, according to a local media report.

Nawrocki's 108-page proposal was broadly similar to the government's 106-page draft but proposed lower penalties. The government's bill sets a maximum fine of 25 million zlotys ($6.9 million) for obstructing inspections, while Nawrocki′s version maintains a 20 million zloty ($5.5 million) penalty. 

Among the bills introduced earlier this week, one from four Law and Justice party MPs seeks to ban cryptoasset activity entirely within Poland. Sejm Speaker Włodzimierz Czarzasty said the chamber will only process that ban proposal after work on the four primary regulatory bills is concluded.