News / EU Parliament Revises Policy On Sanctions that Include Digital Assets Controls
EU Parliament Revises Policy On Sanctions that Include Digital Assets Controls
EU legislators voted for a resolution to monitor crypto service providers and crypto assets to prevent infringements of the imposed sanctions.
05 min read
On Tuesday, the Members of the European Parliament voted to impose sanction violation rules comprising business limitations, travel bans, arms embargos, trade and investment restrictions, and freezing of assets including crypto wallets.
“We are seeking this legislative change because the current differences are creating gaps and lapses for the confiscation of frozen assets,” Sophie in ’t Ved, a Dutch MEP has emphasized in the statement.
In Tuesday’s voting, the “European Parliament supported by 543 votes, 45 votes against and 27 abstentions, passed the directive on criminal offense and undertaking to evade EU sanctions, having received the deal with the Member States before.” There will be an introduction of a common definition and minimum penalties regarding sanctions being breached.
The Main Agenda Of The Legislation
The purpose of this legislation is to deal with any deficiencies and gaps caused by different national strategies for countries to implement sanctions.
Focused Area
- EU Parliament right to new rules to eradicate sanctions breakthroughs.
- The law seeks to simplify the existing gaps in rules and guarantee a harmonious application by the members of the community.
- The rules are introduced to treat the violation breach of EU financial sanctions against Russia.
- Sanctions can be implemented in several ways, including freezing assets, cryptocurrencies, and digital wallets.
- The new bill presents frameworks for all kinds of infringements and corresponding punishment.
The EU Sanctions Give a Right To Seize Frozen Assets
Dutch legislator Sophie in ‘t Veld, who is leading the process of incorporating this new act in parliament, says that it is essential. She also mentioned that they would make possible seizures of frozen assets.
Despite sanctions being imposed at the EU level, each member state must enforce them strictly. Furthermore, the EU’s restrictive measures outline the extent of financial services, like wallet provision & crypto-assets, listed in its said approved document.
The new rule provides the same meaning to violations, e.g., freezing assets of a designated person, moving funds to sanctioned individuals, disrespecting travel ban or arms embargo, or interacting with heads of state bodies of a member of sanctions countries, among others.
Strict Punishment For Breaking Rules
Compliance with EU sanctions, including ones on Russia, must be encouraged and non-abidance would be punished; as noted in the resolution of the European Parliament (EP) just passed in Strasbourg. Member states should understand their obligations under the EU sanctions since not all member states would always apply sanctions imposed by the European Union.
The EU sanctions could include an embargo on the movement of finances or the activity of people, supplying arms, or a closure of any economic sector.
After the vote, Sophie in ‘t Veld from Renew Europe in the Netherlands spoke out. She said the Russian invasion benefits when some people in Europe break laws. These law breakers must be caught. Forum shopping, where people try different countries to find weak laws, must also stop. We need this new law because different approaches in different countries have created weaknesses and loopholes in the past. The new law will permit to seizure of frozen assets. Parliament wanted an ambitious law bringing all countries together in the same approach. Although we can not cover all the gaps we wanted, this law is better than before. It shows our higher assistance for Ukraine.
Suggested Read: The UK Government’s New Consultation Aims To Improve Money Laundering Laws
Future Outlook
With the European Parliament’s ratification of these strict regulations, the EU has performed a crucial step to reduce sanctions violations. Moreover, it means a more unified approach.
The Council, which is the core of the EU’s governing body and comprises top government officials from each member state, must approve the legislation before it can be enacted as law.
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