Poland’s lower house of parliament voted 240-202 on Friday to grant the interior minister the authority to freeze crypto assets, bank accounts, and other property belonging to individuals placed on a national sanctions list, acting before any court reviews the order.
The Sejm, the lower house of Poland’s parliament, approved the Act on Restrictive Measures during its 68th sitting, with one lawmaker abstaining and 17 failing to vote. The Senate received the legislation on Monday and has a 30-day window under Article 121 of the Constitution to either adopt, amend, or reject the bill, after which it heads to President Karol Nawrocki.
As a government bill that also executes European Union sanctions regulations, the law classifies crypto assets as financial means eligible for freezing, relying on the definition provided by the EU’s Markets in Crypto-Assets regulation. The text defines a freeze as a measure designed to halt any movement, transfer, utilization, or alteration that would allow the asset holder to derive benefits.
This freezing mechanism impacts exclusively those individuals and entities placed by the interior minister onto a public national roster, a step taken either independently by the minister or via requests from bodies such as the financial watchdog, the central bank, the internal security service, and the financial intelligence unit. Justifications for inclusion comprise backing a nation already facing EU sanctions, participating in severe human rights violations, or launching or funding information manipulation that presents a significant danger to Poland’s national security.
Placing someone on the list under that final justification necessitates demonstrating a genuine and severe hazard to the country’s interests, security, borders, or elections. However, the legislation provides exceptions for standard journalistic work, political discourse, and publishing, provided such efforts are not intentional campaigns of the nature outlined in the statute.
A freeze that starts before a judge weighs in
The interior minister’s ruling becomes active the day after publication in the ministry’s Public Information Bulletin and is enforceable immediately. Affected parties cannot ask the minister to reconsider the choice. While a listed individual can submit a complaint to an administrative court, the statute dictates that the order stays active until a final verdict is reached, effectively overriding the standard procedure that normally allows a court to suspend a contested mandate.
Furthermore, these measures prohibit supplying funds or property to listed persons and can bar them from participating in public contracts. In specific situations, the economy minister holds the authority to designate a temporary administrator to liquidate frozen assets or, through a separate directive, transfer them to the State Treasury.
What the freeze would mean for bitcoin
The Polish legislation does not target everyday bitcoin owners in the country. Instead, it applies directly to crypto assets owned, possessed, or controlled by individuals and organizations appearing on the sanctions registry. Financial institutions, trading platforms, and other entities encounter administrative penalties if they neglect to freeze these assets or if they grant access to them. Compliance is monitored by the Polish Financial Supervision Authority and the financial intelligence unit regarding the businesses they currently regulate.
The legislation does not outline a mechanism for officials to seize private keys for coins stored in self-custody wallets. Practically speaking, enforcement within Poland relies upon custodians, exchanges, and other mandated organizations capable of halting a transaction.
What comes next for the bill
The legislation still needs to pass through the Senate and reach Nawrocki’s desk. The president previously declined to sign a distinct crypto-assets market bill approved by the Sejm on May 15, and lawmakers were unable to overturn that veto during a September vote that finished 241-198. Nawrocki had also rejected prior iterations of that market legislation, maintaining that the regulations were overly restrictive.
That previous conflict centered on licensing and oversight dictated by the EU’s crypto-assets framework rather than a sanctions-based freeze. Whether the Senate modifies the pre-court freezing provisions, and whether Nawrocki chooses to approve a sanctions measure encompassing bitcoin, remains to be seen.
Frequently Asked Questions
What did the Polish parliament vote to allow?
Poland’s lower house voted 240-202 to let the interior minister freeze the crypto assets, bank accounts, and other property of individuals on a national sanctions list before any court reviews the decision.
Does the law target everyday bitcoin holders in Poland?
No. The legislation focuses exclusively on crypto assets owned, held, or controlled by people and firms explicitly placed on the public national sanctions list.
Can listed individuals challenge the freeze in court?
Yes, a listed person can file a complaint with an administrative court, but the law dictates that the freeze remains in force until the judgment becomes final.
What are the next steps for the bill?
The bill must pass the Senate and be signed by President Karol Nawrocki before it can become law.
