Poland Approves Bill for Court-Free Crypto Asset Freezes

Poland’s lower house of parliament has approved a government-backed legislation known as the Act on Restrictive Measures, allowing the interior minister to freeze cryptocurrency holdings, bank accounts, and other property through administrative decisions without first obtaining a court order. According to CryptoNews, the bill passed on Nov. 6 with 240 votes supporting and 202 opposing it, with one lawmaker abstaining.

The proposed framework establishes a national sanctions list covering individuals and organizations deemed threats to Poland’s security, including those connected to foreign interference and information manipulation. While affected parties can challenge decisions before an administrative court, filing an appeal does not automatically suspend the imposed asset freezes.

Impact on Cryptocurrency Holdings

Cryptocurrency holdings fall within the financial assets covered by the proposed sanctions framework. Banks and cryptocurrency exchanges holding assets for sanctioned customers would be required to comply with freezing orders. For self-custodied wallets, enforcement depends on the ability of authorities to identify assets and restrict dealings, though a government order would not directly grant officials control of private keys.

The legislation does not institute a general freeze on all cryptocurrencies in Poland, applying its restrictions strictly to designated individuals and organizations. The proposal operates alongside existing EU sanctions and is separate from the EU’s Markets in Crypto-Assets Regulation.

Legislative Next Steps and Opposition Concerns

Opposition lawmakers and legal organizations have voiced concerns regarding constitutional protections for property rights and freedom of expression. Legal organization Ordo Iuris argued that the national sanctions list exceeds EU requirements.

The legislation has now moved to the Senate for consideration and still requires the signature of President Karol Nawrocki before enacting into law.

Key facts

• Poland's lower house approved the sanctions bill with 240 votes in favor and 202 against.
• The legislation allows administrative freezes on crypto holdings and bank accounts without prior court orders.
• Affected individuals can appeal decisions, but filings do not automatically suspend the asset freezes.
• The bill has moved to the Senate and requires the approval of President Karol Nawrocki.