Woofun AI reports that Polish crypto exchange Kanga has secured a Class 3 Markets in Crypto-Assets Regulation (MiCA) license in Latvia, granting immediate passporting rights across the European Union. The authorization was issued by the Bank of Latvia on June 18 to the exchange's operator, SIA AlphaRoute, following approval by the Supervisory Committee.

This license empowers the firm to deliver crypto custody, trading, and transfer services throughout the EU bloc without requiring separate national approvals. The strategic move was initiated in November 2025 after the company evaluated multiple jurisdictions to bypass domestic legislative gridlock. CEO Dominik Tomczyk emphasized that the organization leveraged the MiCA transitional period specifically to align operations with the new regulatory framework.

The approval arrives as Poland faces a critical regulatory vacuum ahead of the EU's July 1 transitional deadline. President Nawrocki vetoed a government-backed crypto bill for the third time on June 11, citing provisions he deemed overly burdensome for the industry. Consequently, lawmakers remain unable to finalize implementation legislation despite the looming expiration of the grace period.

In response to the stalemate, members of the Poland 2050 party within Prime Minister Donald Tusk's coalition have submitted a revised proposal. This new draft aims to reduce fees, eliminate specific regulatory clauses, and create a less restrictive environment for crypto entities. Sponsors of the bill are reportedly urging parliament to fast-track the legislation to resolve the impasse.

Woofun AI data shows that the Polish crypto sector is simultaneously navigating heightened scrutiny following a major fraud investigation into Zonda. Prosecutors estimate that customer losses in the Zonda case exceed 350 million zlotys, equivalent to approximately $92.7 million. This financial scandal adds significant pressure on regulators to finalize a stable legal framework.

Kanga's successful licensure in Latvia highlights a growing trend of Polish firms seeking external regulatory anchors while domestic politics stall. The divergence between Kanga's operational readiness and Poland's legislative paralysis underscores the urgency of the upcoming July 1 deadline. This marks a pivotal moment where cross-border licensing becomes a primary survival strategy for regional exchanges.