Poland’s President Vetos MiCA Bill, Cites Threats to ‘Freedoms of Poles’

President Karol Nawrocki of Poland has refused to sign a bill that he believed would have imposed overly-stern regulations on the cryptocurrency market.

The president vetoed provisions of the bill on the basis that they “pose a real threat to the freedom of Poles, their property and the stability of the state,” according to an update on his website on Monday.

The Cryptoasset Market Act was Poland’s legislation to bring it in line with the European Union’s (EU) Markets in Crypto-Assets (MiCA) regulation, which is the bloc’s framework to establish a single rulebook for oversight of the crypto industry.

President Narwocki was concerned that the act would allow the government to disable crypto companies websites “with a single click,” and that the regulation on domain blocking lack transparency and were open to abuse.

The act would also risk pushing companies abroad to Poland’s neighbors such as the Czech Republic and Slovakia due to being overly long and complex. While equivalent acts in these countries are only a dozen pages long, Poland’s proposed act had over 100. Furthermore, the regulatory fees would favor corporations and banks at the expense of startups, who would be prevented from developing, according to the president.

“Overregulation is a surefire way to push companies abroad instead of creating the conditions for them to earn and pay taxes in Poland,” the update said.

Nawrocki, who was elected in June this year, ran as an independent candidate but was supported by the country’s right-wing party, Law and Justice, currently the opposition to the governing coalition led by Prime Minister Donald Tusk.

Poland’s semi-presidential system of government means the president does not have the same executive power that the president does in the U.S., for example. The power of veto is one of the most significant tools the president can wield. A veto can then only be overturned by a three-fifths majority in the Sejm, Poland’s parliament.