As lawmakers open debate on four competing cryptocurrency bills, Poland’s former ruling party has changed its stance and introduced legislation to ban all digital asset activities in the country.
The House of Representatives discusses cryptocurrency legislation and comprehensive ban proposals
On Tuesday, the Sejm, the lower house of the Polish Parliament, began reviewing various draft laws to regulate the cryptocurrency market in Poland, after lawmakers failed to… coup President Karol Nawrocki vetoed previous legislation related to this sector.
Ahead of the session, the Law and Justice Party (PiS) withdrew the cryptocurrency market bill after four of the party’s lawmakers withdrew their support and introduced a new bill pushing for a complete ban on digital asset-related activities in the country.
According to the locality ReportsHouse Speaker Włodzimierz Czarzasty criticized PiS’s shift, calling the change “astonishing” The party’s proposal was scheduled to have its first reading this week, and President Nawrocki, who is supported by the party, also introduced one of the bills to be reviewed today.
Other cryptocurrency bills submitted to the Sejm include proposals from the government and opposition parties Poland 2050 and the Union.
The report indicated that the government and presidential draft laws are largely similar, with the main differences being the authority of the Financial Supervision Authority over… Freeze Crypto calculations and the size of fines imposed on individuals who commit fraud.
While the Finance Ministry’s draft proposes a maximum penalty of 25 million Polish zlotys, or $6.9 million, for obstructing inspections, the president’s text sets it at 20 million Polish zlotys, or $4.5 million.
Czarzasti revealed that the four draft bills related to cryptocurrency market legislation will be reviewed and discussed this week, and the proposal to ban PiS will be considered after the process of other bills is completed. The second reading of the bills is scheduled for Thursday, May 14.
“So the first decision is as follows: First, we will move forward with the four bills that will enter the House of Representatives today; and once the legislative process for these bills is completed, we will move forward with the PiS Parliamentary Club Bill, provided that the Club does not withdraw it,” the Speaker of the House of Representatives stated.
Controversy over Zondacrypto raises controversy over veto
Czarzasty also renewed questions about the recent Zonda Crypto controversy, including its alleged links to Polish political parties and Russian organized crime, and pressed for an explanation as to why President Nawrocki vetoed the Crypto Asset Market Law twice.
For context, Prime Minister Donald Tusk accused the cryptocurrency company Zondacrypto of being so Supported Through Russian money and sponsorship by lawmakers who opposed regulation of digital assets.
Before the failed vote to override Nawrocki’s veto of the law last month, Tusk claimed that the blocking of regulations by some Polish politicians indicated they were serving the company’s interests.
Tusk stressed that the company “sponsors political and social events in Poland and promotes very specific political forces,” including by financing politicians from the PiS and CNT parties. He also claimed that the president was fully aware of Zondacrypto’s position when he vetoed the proposed regulations.
However, Zbigniew Bogowski, head of the President’s Office, responded to the accusations, stressing that Nawrocki was not opposed to regulating the digital assets market in Poland, but that the government had proposed a “flawed” regulatory model.
like I mentioned By Bitcoinist, the Office of the President stated that the president was trying to prevent “over-regulation” and abuse of “legal chaos” proposed by the Polish government.
Slawomir Mintzen, leader of the Union Party, said the new legislation would have “destroyed the Polish cryptocurrency market.” Likewise, Polish economist Krzesztof Piech praised the president’s decision, stressing that it “violates the Polish Constitution and contradicts the EU regulation that he was supposed to implement in Poland.”
The total crypto market capitalization is at $2.65 trillion in the one-week chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com
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