Poland’s lower house of parliament, the Sejm, has passed a bill that expands the scope of its sanctions framework to explicitly include cryptocurrencies among the financial resources that can be frozen. The government-backed legislation was approved with a majority of 240 votes to 202 against, with one abstention. The bill will now progress to the Senate for further deliberation.
Cryptocurrencies Integrated into Sanctions Regime
This new legislation aligns with the European Union’s Markets in Crypto-Assets (MiCA) Regulation, which defines when and how cryptocurrencies can be subjected to sanctions. This measure marks a significant step as it clearly categorizes cryptocurrencies as financial assets that can be frozen by authorities during sanction enforcement. MiCA has been established as a regulatory framework setting common rules for crypto-asset issuers and service providers across the EU.
The bill clearly designates cryptocurrencies as financial resources that can be frozen under sanctions.
According to the bill, Poland’s Interior Minister will be responsible for the national sanctions list. Decisions to add individuals or entities to this list will take effect the day after they are published by the authorities. Affected parties have the right to challenge these decisions in an administrative court. However, the legislation allows the enforcement of sanctions pending any judicial ruling.
Expanding Existing Framework
Poland currently maintains a national sanctions list under a 2022 law intended to curb support for Russia’s aggression against Ukraine. The new bill broadens the reasons for implementing national sanctions to include significant foreign interference attempts and information manipulation activities deemed serious threats to national security. This expansion moves the regulation beyond the current geopolitical risks to encompass a wider security framework.
The legislation stipulates that individuals and companies affected can seek redress in court, but it permits the imposition of sanctions before a court decision is rendered.
Senate Review to Conclude Within 30 Days
The Senate must decide whether to approve, amend, or reject the bill within 30 days. Should the Senate take no action within this timeframe, the Polish Constitution dictates that the bill will be considered accepted in its current form as passed by the Sejm.
Subsequently, the legislation will be presented for consideration by the President, with the Senate’s review representing the final parliamentary step in shaping the bill’s ultimate context. The acceptance of the bill by the Sejm underscores parliamentary support for the government’s approach to broaden its sanction tools to include cryptocurrencies.
