Crypt under strict surveillance: EU takes strict compliance measures


Tue March 12, 2024 ▪
4
min reading ▪ acc
Micaiah A.

In the cozy corridors of the European Parliament, the air is full of mystery: strict laws on sanctions against crypto service providers have been voted on. Direct inspiration from the American model of repression? Cryptocurrency enthusiasts hold their breath.

A battle between two giant balls representing the EU and Bitcoin

The EU strengthens its sanctions: Crypt in the crosshairs

across the atlantic sanctions against cryptocurrency exchange platforms to make the financial magnates tremble. Binance, a giant in the sector, had to pay a an astronomical fine exceeding $4 billion. Meanwhile, the US government demonstrates its power through confiscation illegal darkweb bitcoinswhich has amassed a fortune of nearly 200,000 BTC in its coffers.

CoinDesk reveals the new deal:Europetorn between tradition and modernity, he thinks seriously crack down on recalcitrant cryptocurrency players. Regulatory lightning thundering at the doors of blockchain giants.

Last Tuesday, European Parliament gave the green light new rules aimed at strengthening sanctions in 27 member states. Now, these rules will also extend to cryptocurrency service providers, who could see their assets, including cryptocurrencies, frozen if they fail to comply.

This vote marks a major step in the EU’s efforts to do so to harmonize the application of sanctions throughout the Union. Accepted by an overwhelming majority 543 votes for, 45 against and 27 abstentionsthese rules were motivated by recent tensions with Russiaespecially in response to the invasion of Ukraine.

Dutch representative Sophie in ‘t Veld emphasized the need for legislation and said that it fills the gaps in different national approaches and allows the confiscation of frozen assets.

We need this legislation because different national approaches have created weaknesses and loopholes and will enable the seizure of frozen assets “, she specified.

A decision that was applauded by supporters of European cooperation in the field of security and the fight against violations of financial sanctions.

Unclear area of ​​use

EU decisions on sanctions can be unanimously accepted, but their implementation varies in individual Member States. The press release highlights this each country has the authority to define what constitutes a violation of sanctions and the resulting measures.

According to the statement, EU financial restrictions also apply to cryptocurrency-related services, including the provision of crypto-assets (deemed securities) and wallets. Possible sanctions include freezing assets, including cryptocurrencies.

The newly adopted rules clearly define possible violationsuch as non-freezing of funds, travel bans, arms embargoes and transactions with entities belonging to sanctioned states such as Russia.

Although the legislation still needs to be approved by the Council, it is clear that the restrictive sanctions measures will be a game-changer once they are introduced.

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Mikaia A. avatar

Micaiah A.

The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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