The European Parliament petitioned to Create a Crypto Crime Compensation Fund – Bitcoin News Regulation

A petition has been submitted to the European Parliament, requesting the implementation of a scheme to compensate victims associated with crypto. The offenses mentioned in petition 0421/2020 include fraud, piracy and extortion.

Petition author represents victims of alleged Bitsane scam case

According to the author, lawyer Jonathan Levy, the petition asks the bloc to implement a series of regulatory schemes to “compensate victims” of crypto-related crime activities.

He highlighted that, to date, “no crypto asset funding has been set aside to compensate victims of directly related criminal activity” in the European Union (EU). The lawyer is proposing to implement a .0001 percent euro fee on crypto transactions, which will go to “victim superannuation.”

By petition, victims of crypto-related crime have “tried to recover their losses in different ways,” as a lawsuit in EU national courts. However, Levy states, “none of these remedies have been successful due to the multi-jurisdictional nature” of the crypto transactions.

The document continues to expand on the issue:

The petitioner [Levy] notes that neither the Commission nor the European Ombudsman have declared themselves competent in this matter. It urges the European Parliament to take direct action to help victims of crypto-active crime as part of its EU strategy for creating a genuine single market for digital financial services.

The levy is known in the crypto arena for representing victims of an alleged exit scam by the Irish crypto exchange Bitsane. He cited this case as an example of how the Irish authorities had “done little or nothing” to trace stolen funds.

As of press time, the lawyer claims the stolen victim funds exceeded the $ 1 billion threshold.

The European Commission refused to Create a Crypto Fraud Compensation Fund in 2020

Petition 0421/2020 has 48 supporters so far. In addition, its status remains “available to supporters” on the European Parliament website.

But the practicality of the petition is still questionable. On October 21, 2020, news.Bitcoin.com reported that the European Commission (EC) had expressed its opposition to the creation of a 0.0001 percent euro crypto crime victim superfund.

The Commission argued that most of the crypto crimes occurred outside the EU’s jurisdiction. They also claimed that they did not have the competence to set up and administer such a fund.

What are your thoughts on the petition presented to the European Parliament? Let us know in the comments section below.

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