By refusing to veto the bill, Duda dashed the possibility of political negotiations, which Israel and the United States had still hoped for in recent days.
The "March of the Living" brings individuals from around the world to Poland and Israel to study the history of the Holocaust.
To enter into force, the law still needs to be enacted by the country's president.
If enacted, the draft legislation could have the repercussions on Poland's strategic interests and relationships – including with the United States and Israel.
Ukrainian President Petro Poroshenko and his wife Maryna Poroshenko took part in the ceremony of honoring the memory of the Babyn Yar victims.
A theater in Kyiv provoked protest Tuesday from the local Jewish community after displaying a sign above its entrance proclaiming the title of an upcoming play, "The Trials of John Demjanjuk: A Holocaust Cabaret," according to The Times of Israel, a Jerusalem-based online newspaper.