Poland’s parliament failed on September 4 to override President Karol Nawrocki’s veto of legislation needed to implement the European Union’s Markets in Crypto-Assets framework, leaving domestic crypto firms unable to apply for local authorization while EU-licensed competitors can continue entering the market.

The failed vote extended a regulatory gap that has lasted for more than two months since Poland’s MiCA transition period ended. Lawmakers recorded 241 votes in favor of overriding the veto, 198 against, and three abstentions, falling short of the required threshold.

Without the legislation, Poland has not legally designated the authority responsible for handling MiCA authorization applications. The Polish Financial Supervision Authority has said authorization proceedings cannot begin until that designation is established in law, leaving domestic applicants without a functioning route to obtain a license in Poland.

That has created an uneven playing field inside the single market. Under MiCA, an authorized crypto-asset service provider can operate across EU member states through its home regulator by notifying it of the countries and services involved in cross-border activity. In practice, firms already approved in another EU jurisdiction can access the Polish market even as Poland-based firms remain stuck in the domestic bottleneck.

The pressure increased after July 1, when the maximum MiCA transition period expired. Companies can no longer rely on Poland’s earlier virtual-currency activity register as a basis for authorization. The Katowice Tax Administration Chamber has confirmed that entries on that register no longer provide authorization, and Polish regulators have maintained that domestic law cannot prolong the expired transition period.

For some firms, the remaining option is structural rather than domestic: a Polish crypto group may still reach customers through an affiliate that holds MiCA authorization in another EU country. Businesses unwilling to wait for Warsaw to resolve the legislative impasse may choose to pursue authorization in member states where MiCA licensing is already operational.

Why It Matters

The episode highlights a core tension in MiCA’s rollout: the rulebook is European, but implementation still depends on national legislation and institutions. When one member state falls behind, the bloc’s passporting model can redirect business toward jurisdictions with functioning licensing systems instead of creating a synchronized local market.

For crypto firms, that makes regulatory execution as important as the regulation itself. Poland’s delay does not stop EU-authorized firms from serving the market, but it can disadvantage domestic operators, reshape where companies seek licenses, and reinforce the strategic value of securing approval in member states that moved faster on MiCA implementation.