EU Adopts Regulations Targeting Sanctions Violations, Engulfs Crypto

Coingapestaff
March 12, 2024
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EU Adopts Regulations Targeting Sanctions Violations, Engulfs Crypto

Highlights

  • European Parliament cracks down on violation of EU sanctions.
  • This decision engulfs cryptocurrencies.
  • EU strengthens regulations orbiting digital assets.

Following 543 votes in favor, 45 against, and 27 abstentions noted, the European Parliament recently forged ahead with a set of new rules, cracking down on violations and circumventions of EU sanctions. This move further tightened the EU’s stance on digital assets such as cryptocurrencies, underscoring the nationwide need for a more robust approach that introduces a standard definition for minimum penalties for violations.

The EU sanctions could potentially encompass freezing funds and assets (including crypto-assets), travel bans, arms embargoes, and restrictions on business sectors. However, while the sanctions are adopted at the EU level, enforcement relies on member states, with each having different definitions of violations and penalties.

Furthermore, the new law rules out consistent definitions for violations, including not freezing funds, not respecting travel bans or arms embargoes, transferring funds to persons subject to sanctions, or doing business with state-owned entities of countries under sanction. Offering financial services or legal advisory in violation of these sanctions also comes under the punishable offence umbrella of the EU.

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EU Strengthens Sanctions Enforcement

The EU directive aims to boost sanctions enforcement across the EU by imposing criminal penalties of up to five years of imprisonment for violators throughout member states. This comes as a bid to strengthen EU sanctions enforcement.

Meanwhile, firms breaching the sanction are poised to encounter dissuasive fines, with judges in power to impose penalties based on global turnover or fixed amounts. This decision primarily comes as a measure to combat forum shopping, where varying penalties prompt seeking lenient jurisdictions.

In the interim, with this directive coming into play, the EU embarks upon a venture orbiting punitive measures beyond intentional violations, extending to negligent trade in arms or dual-use items. The initiative further zeroes in on harmonizing enforcement practices across EU countries, mandating consistent and robust penalties for the violation of EU sanctions accordingly.

Also Read: Sweden Central Bank Governor Urges Separation of Bitcoin from Nation’s Financial System

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Renew Europe Group Member Sophia IN ‘T VELD Weighs In

Following the voting for the EU’s new rules directive, rapporteur Sophie in ’t Veld, a member of the Renew Europe Group, a liberal pro-European political group, stressed the need to deal with criminality exploiting European law for the greater benefit. While emphasizing the need to eradicate forum shopping, Sophie also drew attention to apt punitive measures for these violators and offenders.

Although she acknowledged that not all loopholes could be closed with this directive, Sophie spotlighted the European Parliament’s harmonizing approach, showcasing strong support for the cause.

Also Read: Grayscale Files for Bitcoin Mini Trust (BTC) with SEC

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.