Polish lawmakers have again failed to secure the three-fifths majority needed to overturn President Karol Nawrocki’s veto of legislation aimed at strengthening oversight of the country’s crypto market.The Sejm, Poland’s lower house of parliament, on Friday voted 241-198 in favor of overriding the veto, with three abstentions, falling 25 votes short of the 266 needed.The vote was yet another attempt to advance Poland’s crypto market rules after President Karol Nawrocki vetoed crypto legislation three times, arguing that the proposed rules would overregulate the industry.The regulatory dispute comes amid a deepening scandal involving defunct crypto exchange Zondacrypto, with its Estonian operator declared bankrupt and Prime Minister Donald Tusk citing an expanding criminal investigation to push for tighter crypto oversight.Poland remains without MiCA crypto supervisorThe vetoed legislation was designed to establish Poland’s national framework for applying the European Union’s Markets in Crypto-Assets Regulation (MiCA), including placing oversight of the crypto market under the Polish Financial Supervision Authority (KNF).KNF said Friday that the country still lacks a designated authority responsible for supervising the cryptoasset market, despite MiCA already applying across the European Union.Nawrocki has said he supports crypto regulation but argues that Poland’s proposed rules go too far, citing concerns over regulatory costs and authorities’ powers to block websites.Zondacrypto probe expands amid bankruptcyAhead of Friday’s vote, Tusk disclosed excerpts from what he said was testimony by a key witness in the Zondacrypto investigation, alleging payments and attempts to influence politicians linked to Poland’s previous government.Tusk said the witness alleged a 2 million Polish zloty ($550,000) payment arrangement involving a foundation linked to former Justice Minister Zbigniew Ziobro. In separate testimony cited by Tusk, the witness alleged that an unnamed person had promised to secure a presidential pardon if the witness was convicted.Related: Polish Olympic chief charged in Zondacrypto probe, justice minister saysPolish prosecutors are investigating suspected fraud and money laundering connected to Zondacrypto. In July, they merged the case with a probe into the 2022 disappearance of Sylwester Suszek, founder of BitBay, which was later renamed Zondacrypto.Prosecutors in April said losses linked to Zondacrypto were estimated at no less than 350 million Polish zlotys ($95 million).Zondacrypto’s operator, BB Trade Estonia, was officially declared bankrupt by an Estonian court in August, with the first creditors’ meeting scheduled for Sept. 17.Magazine: MiCA is coming for DeFi vaults, but regulation will be difficult