EU signs Council of Europe treaty targeting crypto activities
- Eight countries and the European Union signed a new treaty in Strasbourg to strengthen asset confiscation rules, bringing virtual assets and cryptocurrency activities directly under the Council of...
- The newly opened protocol updates the 2005 Warsaw Convention by introducing official legal definitions for virtual activities and virtual asset service providers.
- Georgia, Greece, Luxembourg, Montenegro, the Principality of Monaco, the United Kingdom, San Marino, and Hungary signed the treaty as initial participants alongside the European Union during the Octopus...
Eight countries and the European Union signed a new treaty in Strasbourg to strengthen asset confiscation rules, bringing virtual assets and cryptocurrency activities directly under the Council of Europe’s anti-money laundering framework. The Council of the European Union authorized the signing on October 13, 2026, via decision 2026/2356, following the formal adoption of the additional protocol by the Council of Europe’s Committee of Ministers on May 15, 2026. The additional protocol was adopted by the ministers of foreign affairs of the 46 member states of the Council of Europe, and the treaty was opened for signature on October 14.
Strasbourg Protocol Targets Virtual Assets and Financial Intelligence Units
The newly opened protocol updates the 2005 Warsaw Convention by introducing official legal definitions for virtual activities and virtual asset service providers. Financial Intelligence Units gain expanded powers under the rules to suspend suspicious operations independently and enhance cross-border cooperation. According to the Council, the protocol presents the potential to considerably strengthen anti-money laundering frameworks.
Georgia, Greece, Luxembourg, Montenegro, the Principality of Monaco, the United Kingdom, San Marino, and Hungary signed the treaty as initial participants alongside the European Union during the Octopus 2026 Cybercrime Conference. Council of Europe General Alain Berset emphasized the necessity of the measures during the signing ceremony. Capitali di origine criminale alimentano la criminalità organizzata,
Berset stated, noting that illicit funds threaten democratic institutions and security across member states. Berset further stated, Privare i criminali di questi capitali significa garantire la sicurezza democratica,
while also adding that Tracciare i fondi
is a central aim of the new instruments established to consolidate the 2005 Warsaw Convention on money laundering and terrorist financing.
Aligning European Union Directives with International Asset Recovery
For the European Union, the practical impact of the treaty remains limited because the provisions largely overlap with internal regulatory frameworks adopted at the EU level. The European Commission participated in negotiations under mandate decision 2024/1764 specifically to guarantee legal consistency with existing directives. These include the sixth anti-money laundering directive (2024/1640), directive 2024/1260 on asset recovery and confiscation, and regulation 2018/1805 on the mutual recognition of freezing and confiscation orders.
In tandem with the anti-money laundering protocol, the EU Council adopted decision 2026/2355 on October 13, 2026, authorizing parallel signatures for judicial cooperation in criminal matters and police cooperation. The overarching framework grants courts the authority to order confiscation across a broader spectrum of criminal offenses, while allowing asset seizures even in the absence of a formal criminal conviction under specific circumstances.
Ratification Requirements and Cross-Border Enforcement Timelines
The protocol requires five formal ratifications—with at least three coming from Council of Europe member states—before it officially enters into force. Once active, the agreement mandates that asset recovery and management offices respond to urgent international requests within strict timeframes, including a three-day turnaround window for emergency actions. Seized assets exceeding 10,000 euros will typically be split fairly among participating nations, while authorities prioritize returning recovered funds to verified victims or legal owners.