EU Parliament Approves New Sanctions Laws That Also Apply to Crypto

The European Parliament has approved a new package of rules to strengthen measures to combat sanctions violations, including the use of cryptocurrencies. Parliamentarians representing the 27 member states of the European Union cast 543 votes in favor of the new rules, 45 voted against and only 27 abstained.

The new rules were initiated as a result of the aggressor country's invasion of Ukraine and growing concerns about non-compliance with EU financial sanctions against Russia. “We need an appropriate legal system because differences in the national strategies of individual states have led to gaps and loopholes that have allowed frozen assets to be expropriated,” Dutch lawmaker Sophie in't Veld, who is responsible for promoting the laws in parliament, said at a press conference.

Although sanctions are imposed at the EU level, individual states must enforce these rules - ranging from the "definition of a violation of sanctions" to the "appropriate penalties" may vary, a press release stated following the plenary vote. According to the adopted text of the bill, the restrictions imposed by the EU Parliament apply to a significant range of financial services, including services for servicing “cryptocurrency assets and wallets.”

Sanctions may include freezing assets, including the cryptocurrency market. “The new law establishes consistent definitions of violations, including failure to freeze funds, failure to comply with travel bans or arms embargoes, transferring funds to persons subject to arrest, or doing business with sanctioned government agencies,” it states. in a press release.

The bill must now be approved by the EU Council, which gathers senior officials from European Union member states, before it becomes law.