Polish lawmakers adopted a bill on Friday regulating cryptocurrencies, as scrutiny surrounding the collapse of the country’s largest crypto exchange intensified and political disagreements over oversight of the sector continued.

The legislation implements the European Union’s Markets in Crypto-Assets Regulation (MiCA), which Poland is required to approve by July.

The move comes as prosecutors continue investigating Zondacrypto, formerly one of Poland’s biggest cryptocurrency exchanges, over allegations of fraud and concerns raised by government officials regarding possible Russian influence.

Polish prosecutors have launched a multi-million dollar fraud probe into Zondacrypto after thousands of users reportedly lost access to their funds.

According to prosecutors, customer losses total more than 350 million zlotys, equivalent to approximately $95.93 million.

The controversy has drawn national attention, with Prime Minister Donald Tusk raising concerns about the exchange’s origins and alleged foreign influence.

The government has also argued that the case extends beyond financial losses, pointing to the exchange’s previous sponsorship of events attended by politicians linked to Poland’s nationalist opposition.

Officials said these ties have raised broader concerns regarding possible foreign political interference.

Zondacrypto did not respond to a request for comment sent by email on Thursday.

The exchange’s founder, Sylwester Suszek, disappeared in 2022, according to reports cited by Polish media.

Media reports also stated that his successor, Przemyslaw Kral, is currently in Israel, where he holds citizenship.

The situation could complicate potential extradition proceedings.

The allegations surrounding Zondacrypto have increased pressure on the Polish government to move ahead with implementing European crypto regulations.

The Polish government has already attempted twice to pass legislation implementing MiCA rules, but the measures were vetoed by President Karol Nawrocki, who is backed by Poland’s nationalist opposition.

Nawrocki argued that the proposed rules would place excessive burdens on cryptocurrency firms and potentially drive businesses out of the country.

The president later submitted his own version of the legislation to parliament.

While broadly similar to the government’s proposal, it included lower penalties for regulatory violations.

The latest bill could still face resistance, as Nawrocki retains the authority to block the legislation again.

The dispute reflects wider disagreements within Poland over how aggressively the fast-growing cryptocurrency industry should be supervised.

Poland’s financial watchdog has warned that local entities may lose the ability to provide crypto-asset services if the country fails to implement MiCA regulations before the July deadline.

The government has argued that adopting the EU framework is necessary to maintain legal certainty for crypto firms operating in Poland and to strengthen oversight following the Zondacrypto collapse.

At the same time, the case has fuelled concerns within Warsaw over the potential use of cryptocurrencies in activities linked to Russian influence operations.

Polish authorities have previously stated that Russia uses cryptocurrencies to pay saboteurs operating in Poland.

Moscow has repeatedly denied responsibility for sabotage activities in Poland and elsewhere in Europe.

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