European Union legislators have taken a decisive step in strengthening the fight against international sanctions violations, with a particular focus on digital assets. On Tuesday, members of the European Parliament overwhelmingly passed new rules aimed at curbing sanctions circumventions, including measures targeting crypto service providers and the ability to freeze digital assets.
An Enhanced Legislative Arsenal
The legislative initiative adopted by members of the European Parliament revolves around various measures, such as travel bans, arms embargoes, restrictions on certain sectors, and most notably, asset freezing, including cryptocurrencies and digital wallets.
We need this legislation because divergent national approaches have created weaknesses and loopholes, and this will enable the confiscation of frozen assets.
Sophie in ’t Veld, Member of European Parliament
Towards Stricter Sanctions
The new legislative framework provides for harsher sanctions for those who violate or attempt to circumvent sanctions. Now, sanctions-related offenses will become criminal offenses, punishable by prison sentences of up to five years in all member states, thereby harmonizing the criminal response within the EU.
The adoption of these measures was prompted by the growing concern that EU sanctions against Russia are being circumvented. Legislators representing the 27 EU member states overwhelmingly voted in favor of the new rules, with 543 votes for, 45 against, and 27 abstentions.
