The European Parliament recently voted on new regulations aimed at strengthening the enforcement of sanctions violations, with a specific focus on the cryptocurrency sector.

The legislation received overwhelming support, with 543 votes in favor, 45 against, and 27 abstentions from EU member states’ representatives. This move comes in response to Russia’s actions in Ukraine, prompting increased scrutiny on potential breaches of the EU’s financial sanctions against Russia.

Sophie in ‘t Veld, a Dutch member of parliament leading the legislation, stressed the importance of these rules. She pointed out the existing disparities in national enforcement as a source of vulnerabilities and loopholes. The legislation aims to standardize the process of confiscating frozen assets.

Currently, the EU imposes sanctions collectively, but individual member states are responsible for enforcement. This results in varying definitions of violations and penalties. The newly approved measures address financial services, including transactions involving cryptocurrencies and digital wallets, while establishing uniform definitions for violations such as failing to freeze funds, disregarding travel bans or arms embargoes, transferring funds to sanctioned individuals, or engaging with state-owned enterprises of sanctioned countries.

Before becoming law, the legislation must receive approval from the council, comprised of senior government officials from member states.

For more news and updates on the cryptocurrency sector, visit Global Crypto News.

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