- Penalties for disobeying have become more severe under the new regulation.
- The new regulations were approved by 543 votes to 45 with abstentions.
Lawmakers in the European Union (EU) have passed new regulations to severely punish anyone who violates sanctions, including when it comes to cryptocurrency.
The European Parliament (MEPs) passed fresh sanctions against travel bans, weapons embargoes, limitations on industries, and the freezing of assets (including cryptocurrency and wallets) on Tuesday.
According to the press release:
“The new law sets 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.”
Stringent Punishments
Moreover, penalties for disobeying or evading fines have become more severe under the new regulation. Also, all member states are now required to implement criminal punishments for violations, with potential jail terms of five years, according to the new legislation.
Dutch MEP Sophie in ’t Veld stated:
“We need this legislation because diverging national approaches have created weaknesses and loopholes, and it will allow for frozen assets to be confiscated.”
Furthermore, the new regulations were approved by 543 votes to 45 with abstentions, representing the 27 member states of the European Union. Also, an assortment of financial services, including the provision of “crypto-assets and wallets,” are subject to the EU’s stringent regulations, according to the press release. Crypto assets, like any other asset, may be frozen as part of sanctions.
Before the bill may become law, it must get approval by the Council, an assembly of high-ranking government officials from member nations. Fears that Russia was evading the European Union’s sanctions drove the new laws.
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