On Tuesday, the European Parliament voted to implement a new set of regulations to enhance the enforcement of sanctions violations, focusing on the crypto sector.

The proposed legislation garnered considerable backing, securing 543 votes in favor, with 45 votes against and 27 abstentions from representatives of the 27 member states of the European Union (EU).

Primarily crafted in response to Russia's military intervention in Ukraine and the subsequent scrutiny over potential breaches of the EU's financial sanctions against Russia, the legislation aims to address existing disparities in national enforcement.

Sophie in 't Veld, a Dutch parliamentarian overseeing the legislation, stressed the imperative of establishing uniform rules, pointing out the vulnerabilities and loopholes stemming from varying enforcement practices across member states. She emphasized that the legislation seeks to standardize procedures for confiscating frozen assets.

Currently, while the EU imposes sanctions collectively, individual member states are responsible for enforcing them, leading to discrepancies in defining sanctions violations and determining penalties.

The approved measures encompass a range of financial activities, including transactions involving cryptocurrencies and digital wallets. They establish consistent definitions for violations, such as failure to freeze assets, disregarding travel bans or arms embargoes, transferring funds to sanctioned individuals, or engaging with state-owned enterprises of sanctioned nations.

However, before becoming law, the legislation requires approval from the council, comprised of senior government officials from member states.