Freezing and confiscation of cryptos: Europe strengthens its cooperation against criminal networks

Accelerate cooperation to recover criminal assets. The European Union and eight States signed a protocol on October 14 in Strasbourg strengthening the tools for freezing, seizure and confiscation, particularly for cryptoassets. This text supplements the 2005 Warsaw Convention, dedicated to money laundering and the financing of terrorism. Its objective: to better coordinate the authorities in the face of funds whose funds circulate between several jurisdictions. However, it remains subject to ratification.

Key Points

The EU and eight countries have signed a Council of Europe protocol strengthening the recovery of criminal assets, including cryptoassets.

The system provides for emergency measures and accelerated exchanges between competent authorities.

Five ratifications, including three from Council of Europe member states, are required for its entry into force.

Cryptoassets: A strengthened framework to freeze and confiscate criminal funds

Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino and the United Kingdom are among the first signatories, alongside the European Union. The ceremony took place during the Octopus conference on cybercrime.

The text falls under the Council of Europe, an organization separate from the EU. It is therefore not a new regulation directly applicable in the Twenty-Seven, but an instrument of international cooperation.

The protocol strengthens several mechanisms. In particular, it provides for emergency freezes or seizures, when conditions permit, without prior warning to the people concerned. The objective is to prevent the movement or concealment of assets before their possible confiscation.

It also expands the possibilities for confiscation of property linked to other criminal activities and, in certain situations, without criminal conviction. Assets held by third parties may be affected, with protections for bona fide holders.

Cryptocurrencies were not previously elusive. The novelty lies in the strengthening of common tools and their coordination, rather than in the creation of an entirely new power. We must also distinguish freezing, which temporarily prevents the disposal of an asset, from confiscation, which organizes its definitive deprivation within the framework provided by law.

Accelerated cooperation, but persistent technical obstacles

The protocol strengthens the role of financial intelligence units and provides for specialized structures in asset tracing and management. It also organizes direct exchanges between services, with response times that can be reduced to three days for certain urgent requests. This deadline does not mean that the funds will be systematically blocked or recovered under the same conditions.

This cooperation responds to a concrete difficulty: identifying transactions is not enough to regain control of assets. It is necessary to identify the competent interlocutors, establish the legal foundations of the intervention and have a means of carrying out the measure.

The distinction appears in particular between funds kept with a service provider and cryptocurrencies held directly by an individual. In the second case, a court order does not automatically provide the private key needed to move assets. Self-custody therefore constitutes a practical challenge, without placing assets outside the scope of seizures.

The protocol still has to go through ratification procedures. For the European Union, its conclusion requires in particular a decision of the Council and the consent of the European Parliament. The Commission presents it as a complement to existing European systems for confiscation, recognition of decisions and the fight against money laundering.