EU and Eight Countries Sign Protocol Bringing Crypto Into Asset Recovery

A Council of Europe protocol signed by the European Union and eight countries would bring virtual assets into cross-border crime recovery rules, extending a treaty framework addressing money laundering and terrorist financing. The protocol on cross-border criminal asset recovery also sets out rules for crypto transactions and confiscated property.

The signatories are Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino and the United Kingdom, alongside the European Union. The additional protocol supplements the Council of Europe convention on money laundering and terrorist financing and places virtual assets and virtual asset service providers within its scope.

Under the measure, financial intelligence units could suspend crypto transactions suspected of money laundering. Participating countries would establish dedicated asset recovery and management offices.

Victims would have priority in recovering confiscated assets. Recovered funds above €10,000 would generally be divided equally among the countries involved. Governments are also encouraged to use confiscated assets for social or public purposes.