Polish lawmakers on Friday adopted a crypto regulation bill and implemented the European Union’s Markets in Crypto-Assets Regulation (MiCA), which the nation has a July deadline to approve.
The latest regulatory milestone in Poland comes amid a scandal over the collapse of Zondacrypto, Poland’s foremost crypto trading platform. This combination of events further deepened discussions on how much supervision should be given to the cryptocurrency sector in Poland.
Zondacrypto’s collapse has triggered a multi-million-dollar fraud probe by Polish prosecutors. There are allegations, including from Prime Minister Donald Tusk, who believes the issues surrounding Zondacrypto could have some Russian influence, and intensified calls for action on regulation.
Notably, the investigation of Zondacrypto is multi-faceted, with a socio-political undertone. From the crypto trading angle, thousands of users are stranded and unable to withdraw their funds from the platform. According to prosecutors, the total losses incurred were over 350 million zlotys, equivalent to $95.93 million.
Meanwhile, the government is suggesting wider implications, with Tusk suspecting Russian funds are backing the firm and that Zondacrypto’s previous sponsorship of events attended by prominent members of Poland’s nationalist opposition wing signals foreign political interference.
Zondacrypto’s founder, Sylwester Suszek, has been missing since 2022, while his successor has relocated to Israel, where he holds citizenship, complicating extradition, according to reports from Polish media.
Tusk highlighted the uncertainty surrounding Zondacrypto’s activities when he told government officials earlier this month that they were dealing with a company whose origins are “particularly shady.” According to Tusk, the Russian mafia is involved in organising the Zondacrypto exchange and its activities.
Notably, the Polish government already accused Russia of using cryptocurrencies to pay saboteurs despite repeated denials from Moscow, with the Russian government insisting that it is not involved in sabotaging Poland or any other country in Europe.
The Polish government has tried on two previous occasions to pass legislation implementing the EU crypto rules, but was vetoed by President Karol Nawrocki, with the backing of the country’s nationalist opposition. Nawrocki argued that the government bill would drive crypto firms away due to excessive burdens. However, he submitted an alternative bill to parliament, which was broadly similar to the government’s, but with lower penalties for violations.
It is worth noting that the latest bill’s passing still depends on the President’s decision not to block it for a third time. Doing so would leave Polish entities at risk of losing the ability to provide crypto asset services after the July deadline.
Related: Crypto Chaos Unfolds as Zondacrypto Faces $100M Crisis Risks
