The controversial legislation meant to regulate the Polish crypto space is now stuck in parliament after the Senate complicated its adoption even further.
The upper house of Poland’s bicameral legislature passed the bill it had received from the Sejm, rejecting a number of amendments and adding its own.
Senators send vetoed crypto act back to Polish deputies
Poland’s long-overdue Crypto-Asset Market Act is returning to the Sejm, the lower house of parliament in Warsaw, after the Senate introduced its corrections before approving it.
Most notably, the senators abolished an amendment adopted by the deputies in December, which would have lowered a “supervisory fee” for token issuers from 0.4% to 0.1%.
According to the upper chamber’s version of the legislation, the levy will eventually rise to 0.5%, Bitcoin.pl reported on Thursday.
The draft law now suggests that the fee is part of the financial obligations of companies issuing digital assets and cannot go below €500, the crypto news outlet detailed and commented:
“Yes, although it sounds ridiculous, the senators decided to spoil the bill even further, which has been bad from the start.”
Over the past months, the publication has been voicing the local crypto community’s worries that the Polish legislation is far stricter than the latest EU standards it’s supposed to implement.
Representatives of the industry have been warning that the charges and requirements it’s introducing are threatening the very survival of domestic crypto firms, especially smaller ones.
Overregulation has been a major concern in regard to the framework proposed by the government led by Prime Minister Donald Tusk’s Civic Coalition (KO) party.
The sponsors of the act are granting Poland’s Financial Supervision Authority (KNF) virtually full control over the Polish crypto market, arguably Eastern Europe’s largest.
The agency will be able to suspend business activities, block online platforms, including exchanges, and impose heavy financial penalties on service providers at will.
The changes made by the Senate are not affecting its powers. At the same time, its majority rejected some 15 amendments proposed by the Law and Justice (PiS) party, the main opposition force.
Will Poland regulate its crypto space soon?
The ruling coalition’s bill is now returning to the Sejm, which will have the option to accept the Senate’s proposal or restore its earlier variant.
In either case, the document will then be resubmitted to President Karol Nawrocki for signature. He is widely expected to reject it once again.
The Sejm first passed the controversial law in September. Elected last year with political support from the opposition, the Polish head of state vetoed it in early December.
The house approved the returned legislation on second reading later last month, as reported by Cryptopolitan, after its initial attempt to reverse the president’s move failed.
In his motives for the veto, Nawrocki added a list of his own concerns about the bill, including regarding the personal and economic freedoms of Poles and the stability of their country.
The government responded by accusing him of involvement in a “crypto affair” and of having a “weird relationship” with the sector.
According to the Polish prime minister, the latter has been infiltrated by Russian players. Donald Tusk also insisted that the adoption of the proposed bill is a matter of national security.
The stalemate surrounding Poland’s crypto act, designed to transpose Europe’s Markets in Crypto Assets (MiCA) rules into national law, is likely to continue.
The pro-EU Tusk cabinet does not have the necessary majority to overcome Karol Nawrocki’s veto, while the PiS party won’t be able to secure enough votes for an alternative regulatory framework it’s preparing to present.