YEREVAN (CoinChapter.com) — The European Union officials are coming after your crypto assets. According to a recent agreement between the EU Council and the European Parliament negotiators, member states will have the power to trace, manage, freeze, and confiscate digital assets. While the measures are yet to be approved by the EU institutions, they will apply to assets transferred to third parties. However, this will only be applicable if the receiving party is aware that the transfer was done to avoid confiscation.
You May Lose Your Cryptocurrency
According to a recent press release by the Council of the European Union, authorities can confiscate funds even if they are not directly related to crime. However, if it is determined to be derived from criminal activities during the investigation, they can be liable to seizure.
According to the Spanish government, which is currently holding the council’s presidency, the new measure will help in the fight against organized crime.
“The gains from criminal activities are staggering. Only if governments have the means to claw back these profits do they stand a chance of fighting organized crime,”
Spanish Justice Minister Félix Bolaños García, said about the new rules.
Moreover, member states must adopt measures to confiscate property of a value corresponding to the criminal yield, per the announcement.
Crackdown on Illegal Crypto Asset Source Long Overdue
The recent agreement to crack down on illegal crypto sources is not new. Earlier this year, on May 22, the council released the basic proposal for a directive on asset recovery and confiscation. The earlier version specifically mentioned cryptocurrencies.
“This Directive is without prejudice to the existing national procedures for keeping legal documents or instruments evidencing title or interest in property, as they are applied by the competent national authorities or public bodies in accordance with national law. The definition should cover all forms of property, including crypto assets,”
it read.
The measures also come against growing concerns about illicit activities linked to cryptocurrencies. Recently, Binance, the largest crypto exchange by daily volumes, faced a crackdown in several EU nations.
