Polish President Karol Nawrocki has vetoed for the third time a cryptocurrency regulatory bill that aimed to implement the European Markets for Crypto Assets (MiCA) regulation in the country.

Nawrocki he said On Thursday, he advocated regulating the cryptocurrency market, but argued that the government only included one of the 16 key amendments proposed by his office. He stated that the text was almost identical to the two previous drafts that he rejected.

The third bill veto delays Poland’s alignment with the EU-wide regulatory framework weeks before the end of the MiCA transition period on July 1. After the end of the grace period, crypto asset service providers will be required to hold a MiCA license or stop serving EU customers.

Poland is currently the only EU member state that does not have a national implementation of MiCA. After the July 1 deadline, Polish crypto asset service providers who do not have a MiCA license may lose their legal basis to serve EU clients.

Related: MiCA architect says EU should prioritize tokenization over DeFi rules

Polish Prime Minister Donald Tusk sharply criticized the veto in Thursday’s post

Source: Donald Tusk

The political impasse is deepening over the cryptocurrency bill

The decision deepens Poland’s political dispute over how the country should supervise crypto assets. This comes almost two months after the Polish parliament failed to reject the second veto issued by President Nawrocki.

The legislator lacked the 263 votes needed to override the veto in the April vote on the bill supported by Tusk’s government and aimed at equalizing Poland with MiCA.

Nawrocki hash apparently defended his opposition, citing concerns about excessive regulation, restricted transparency and a potential burden on compact businesses.

Government officials have warned that delays expose consumers and businesses to fraud and abuse.

The third veto comes as scrutiny of Poland’s crypto sector intensifies. Prosecutors are investigating one of Poland’s largest cryptocurrency exchanges, Zondacrypto, on suspicion of fraud and money laundering involving 2,000 customers with alleged links to Russian organized crime.

Zonda’s president, Przemysław Kral, denies allegations of misappropriation of funds.

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