EU Lawmakers Seek Crypto Safeguards in First-of-Its-Kind EU Strategy

The European Parliament has called for corruption risks involving crypto assets and concealed ownership to be addressed in the European Union’s first anti-corruption strategy, alongside stronger safeguards for public spending and political finance. Lawmakers adopted their priorities as the European Commission prepares a strategy scheduled for release before the end of 2026.

The Parliament’s announcement calls for more effective recovery of proceeds linked to corruption and closer cooperation among investigators. Its recommendations also cover conflicts of interest, lobbying and the independence of bodies responsible for investigating corruption. The vote was conducted by a show of hands.

The resolution sets out Parliament’s policy demands; it does not itself introduce new compliance requirements for crypto businesses. Parliament’s procedure record identifies the initiative as a resolution on the upcoming strategy and records the October 8 vote. The Commission’s eventual document will show how it responds to those demands.

The Commission describes the planned strategy as an effort to develop a comprehensive approach across policy areas while responding to new corruption risks. It is intended to complement the EU’s anti-corruption directive, rather than replace the legislation. Adoption remains planned for the end of 2026.

Preparations included a public consultation and a call for evidence launched on May 11, with feedback accepted until July 6. In its consultation announcement, the Commission said the EU already has measures covering financial integrity, whistleblower protection, procurement, asset confiscation and the protection of its financial interests.

The same announcement said the new anti-corruption directive introduces stronger rules, harmonized penalties and measures to improve prevention, investigations and prosecution. The strategy is intended to strengthen coordination across that wider framework. It will also build on the annual rule-of-law process, which assesses national anti-corruption systems, and complement the EU Network against Corruption and the review of the EU’s framework for protecting its financial interests.

Crypto assets enter this discussion against a background of existing financial oversight legislation. The Council of the EU adopted rules in May 2023 extending information requirements for transfers of funds to crypto transfers. Those requirements address the ability to identify the parties involved in transactions handled by crypto-asset service providers.

According to the Council’s explanation, providers must collect and make available specified information about senders and beneficiaries, regardless of the amount transferred. The purpose is to make transfers traceable and help identify and block suspicious transactions. These obligations belong to the EU’s framework for preventing the misuse of financial services, separate from Parliament’s latest strategy recommendations.

The October resolution therefore sits within a policy environment where transaction information is already regulated. Its focus on crypto-related corruption risks adds an anti-corruption policy dimension to that framework.

The EU also has a separate asset recovery and confiscation directive, adopted in 2024. It sets minimum rules for tracing, identifying, freezing, confiscating and managing property in proceedings concerning alleged offences. Its definition of property includes crypto assets, alongside other tangible and intangible holdings.

The official legislative summary describes powers designed to help national asset recovery offices work with other authorities and respond to cases involving more than one member state. These include access to relevant databases and registers, cooperation with the European Public Prosecutor’s Office and the ability to act on freezing or confiscation orders issued elsewhere in the EU.

Recovery proceedings also involve protections and responsibilities beyond finding assets. The directive requires victims’ claims to be considered during tracing, freezing and confiscation, while allowing confiscated property to be used for public-interest or social purposes where appropriate. Parliament’s demand for stronger recovery efforts comes alongside this existing legal framework.

The strategy debate reaches beyond financial transactions. Agence Europe reported that lawmakers want greater emphasis on assessing corruption risks and targeting preventive action. They also urged the Commission to support data analytics and artificial intelligence for detecting and preventing corruption, while addressing risks involving crypto assets and opaque ownership.

The agency’s account identifies requests for additional resources for the European Public Prosecutor’s Office and stronger rule-of-law conditions in the next long-term EU budget. Lawmakers also want future national and regional programs to include anti-corruption milestones and targets where appropriate, linking prevention and accountability to the use of EU funds.

Parliament’s own announcement calls for measurable monitoring, stronger protection for whistleblowers and investigative journalists, and involvement of civil society throughout the strategy.