The European Parliament on Tuesday approved a new set of rules to crack down on sanctions violations, including those through virtual currencies.
Parliamentarians representing the 27 European Union member states voted 543 in favor of the new rules, 45 against and 27 abstained. The new rules were enacted in the wake of Russia's invasion of Ukraine and growing concerns that EU financial sanctions against Russia were being violated.
“This law is necessary because differences in national approaches create weaknesses and loopholes that allow for the confiscation of frozen assets,” said Dutch lawmaker Sophie Int Feld, who is responsible for introducing the law in parliament. said in a statement. .
Sanctions are adopted at EU level, but individual countries are obliged to enforce their rules, and everything from the definition of a sanctions violation to the associated penalties can vary from country to country. Yes, a press release about the plenary vote said.
According to the adopted document, the EU's restrictive measures will apply to a wide range of financial services, including the provision of “crypto assets and wallets”. Sanctions may include freezing assets, including cryptocurrencies.
“The new law provides a consistent definition of violations, including failure to freeze funds, failure to comply with travel and arms embargoes, transfer of funds to sanctioned parties, and transactions with state-owned enterprises of sanctioned countries.” said the press release.
To become law, the bill must be approved by a board of government officials from member countries.
