SKN | Poland Advances Crypto Sanctions Bill Allowing Authorities to Freeze Digital Assets

Key Points:

• Parliament Approves New Legislation: Poland’s lower house, the Sejm, passed a government-backed sanctions bill by 240 votes to 202, with one abstention, explicitly including cryptocurrency assets within its enforcement framework.

• Expanded Government Powers: The legislation would allow authorities to freeze crypto assets belonging to individuals and companies placed on Poland’s national sanctions list, including under expanded national security grounds.

• Senate Review Pending: The bill has moved to the Senate, which has 30 days to approve, amend or reject the legislation before it can proceed to the president for consideration.

Poland Moves to Expand Cryptocurrency Sanctions Powers

Poland is moving toward a broader sanctions framework that would give authorities explicit powers to freeze cryptocurrency assets held by individuals and companies designated under its national sanctions system. The proposed legislation, approved by the country’s lower parliamentary chamber, reflects growing efforts among European governments to incorporate digital assets into existing financial enforcement mechanisms.

The Sejm approved the government-backed Act on Restrictive Measures on Friday by 240 votes to 202, with one abstention. The legislation was subsequently forwarded to the Senate on Monday, according to official parliamentary records.

A central provision explicitly includes crypto assets, as defined under the European Union’s Markets in Crypto-Assets Regulation (MiCA), among the financial funds that authorities can freeze when imposing sanctions.

The proposal represents an expansion of Poland’s existing enforcement framework, bringing cryptocurrency holdings more directly within the scope of national sanctions measures.

Authorities Could Freeze Digital Assets Under Expanded Rules

Under the proposed legislation, Poland’s interior minister would oversee the national sanctions list, with decisions to designate individuals or companies taking effect the day after publication.

Once a designation becomes effective, authorities would have the ability to freeze covered financial assets, including cryptocurrencies.

The legislation also establishes a legal mechanism through which affected individuals and companies can challenge their inclusion on the sanctions list in administrative court.

However, the proposed framework allows enforcement to begin before a court delivers a ruling on such challenges. This means that individuals or businesses contesting a designation could face asset restrictions while their legal proceedings remain unresolved.

The inclusion of digital assets is particularly significant because cryptocurrency holdings operate through blockchain-based networks and may involve exchanges, custodians and self-hosted wallets. The legislation establishes the legal basis for including crypto assets within sanctions enforcement, although the supplied parliamentary information does not detail the technical procedures authorities would use to implement individual freezes.

National Security Concerns Broaden Sanctions Framework

Poland already maintains a national sanctions list under legislation introduced in 2022 to counter support for Russia’s invasion of Ukraine.

The new bill would expand the circumstances under which individuals and companies could be added to that list.

Beyond the existing sanctions framework, the proposed legislation includes certain forms of foreign interference and information manipulation that authorities consider serious threats to national security.

This broader scope demonstrates that the legislation is not limited to cryptocurrency enforcement. Instead, digital assets form part of a wider effort to strengthen Poland’s ability to respond to activities considered harmful to national security.

By explicitly recognizing crypto assets within the framework, the government seeks to ensure that digital financial holdings are not excluded from the country’s restrictive measures.

Senate Review Determines Next Legislative Step

Following approval by the Sejm, the legislation has entered the Senate’s review process.

The upper parliamentary chamber has 30 days to approve the bill, introduce amendments or reject it. If the Senate takes no action within that period, Poland’s Constitution treats the legislation as approved in the version adopted by the Sejm.

The bill can then proceed to the president for consideration.

Until the remaining legislative steps are completed, the proposed changes should not be treated as fully enacted law.

Outlook: Cryptocurrency Compliance Faces Greater Regulatory Attention

Poland’s proposed legislation highlights the increasing integration of cryptocurrency into national financial enforcement systems. By explicitly including digital assets within its sanctions framework, the country is seeking to close potential gaps between traditional financial restrictions and blockchain-based holdings.

For cryptocurrency exchanges, custodians and other digital asset service providers, developments of this kind reinforce the importance of sanctions compliance and effective asset-control procedures.

The Senate’s decision and subsequent presidential consideration will determine the legislation’s final path. More broadly, the initiative reflects a European regulatory environment in which cryptocurrency is increasingly being addressed within established financial and national security frameworks.