The European Parliament on Tuesday approved a new set of rules to crack down on sanctions violations, including through cryptocurrencies.
Parliamentarians representing the 27 member states of the European Union cast a majority of 543 votes in favor of the new rules, compared to 45 votes against them and 27 abstentions. The new rules were prompted by Russia's invasion of Ukraine and growing fears of violating financial sanctions imposed by the European Union on Russia.
“We need this legislation because the disparate national approach has created vulnerabilities and loopholes, and will allow frozen assets to be confiscated,” Dutch MP Sophie Ent Veld, who is responsible for shepherding the laws through parliament, said in a press release. .
Although sanctions are adopted at the EU level, individual countries are tasked with enforcing these rules — and everything from “definitions of sanctions violations” and “related sanctions” can change from country to country, a press release about the full vote says. His form.
The approved text said that the restrictive measures imposed by the European Union apply to a wide range of financial services, including the provision of “crypto assets and wallets.” Sanctions can include freezing assets, including cryptocurrencies.
“The new law establishes consistent definitions of violations, including failure to freeze funds, failure to respect travel or arms embargoes, transferring funds to sanctioned persons, or dealing with state-owned entities in sanctioned countries,” the press release said.
The legislation must now get the green light by the Council, which brings together senior government officials from member states, before it becomes law.
