The European Commission (EC) opposes the creation of a super fund for victims of cryptocurrency crimes, which will finance all cryptocurrency transactions that occur within the EU at $0.0001 per dollar. The committee stated that it has no authority to establish and manage such funds. It also believes that most crypto crimes occur outside the jurisdiction of the European Union.

EC expresses lack of required capacity

The European Community made the above comments in response to a petition submitted to the European Parliament (EUP) by a consortium of victims of crypto fraud. The victim insisted in the petition that the European Community was one of the largest bureaucracies and could ideally manage the proposed funds.

The committee, which had previously rejected the petition, said in its response to EUP that the victims must be changed to “continue to continue hearing their respective cases through national law enforcement agencies.” The European Community believes that victims can “use existing channels or cause losses” Legal persons seeking compensation”.

The Commission also clarified that: “EU rules on compensation may apply to intentional violent crimes.”

The victim said that the European Community is also not satisfied with the industry

At the same time, the victim criticized the EU’s indifferent response and accused the Commission of taking an “anti-consumerist” stance. The victim’s lawyer Jonathan Levy said in a statement:

The European Commission believes that even if an alliance-wide crypto asset supervision plan is issued, it lacks the ability to assist victims of crypto crimes. The committee manages billions of euros in grants and credits each year, and has one of the largest and most well-trained bureaucracies in the world, but it cannot manage a simple victim fund, which has almost no transaction fee per euro. To .0001% comes from my supplement. .

The lawyer revealed that the committee has invested more than $110 million in blockchain innovation rewards and investments. However, Levi pointed out that the European Commission claims that it lacks the ability to manage the void of superfunds, and therefore pointed out that “unless the Union’s funds are simply allocated without the hope of supervision, the committee must have the ability to supervise crypto assets.”

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EUP estimates that at least US$500 to US$5.5 billion of crypto asset fraud occurs in the EU each year. The lawyer suggested that if no action is taken, the European Community will be regarded as teaching a crypto crime. Levy’s customers suffered more than $44 million in losses, he added:

“The European Commission itself is still the main custodian of crypto crimes, and the European Commission authorizes it to ccTLD. The EU is still the ongoing custodian of the One Coin / One Life pyramid scheme, which deceived victims (including my customers) for more than 44 One hundred million U.S. dollars.”

Despite the arrest and disappearance of some planners, the Onecoin Crypto Pyramid Project was recently cancelled by the Financial Conduct Authority (FCA), and the plan is still effective.

Experts say super funds are feasible

At the same time, in the expert opinion submitted to the EU Parliament’s Petition Committee on October 20, technical expert Michael K McKibben said that he found that “distributed ledger nodes have already received most of the daily $110 billion in crypto asset transactions. Node transaction or relay fee. Volume.”

The technical expert agreed with the petitioner’s opinion that for every additional dollar of insurance fund costs, there will be costs for the victim’s super fund instead of the unnoticed .0001 cents. Experts concluded that because crypto assets are currently not insurable, “the proposed EU super fund will provide much-needed relief to victims of Ponzi schemes, hackers, fraudulent ICOs, and extortion that use or involve crypto assets. “

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American software engineer McKibben also expressed his opinion on the reasons why he thinks the super fund is feasible:

In fact, many nodes are subordinate units and have no independent discretion. Therefore, it is relatively easy to add EU insurance fund costs to the distributed ledger system.

After failing to obtain compensation through the national courts, victims of crypto fraud are now urging EU authorities to help establish a self-sufficient super fund. However, after the committee responds, EUP will continue to seek input before deciding on the next step. At the same time, Levy said, other stakeholders can still come forward and express their opinions to support the petition.

What is your latest response from the European Community to the petitioner? Tell us what you think in the comments section below.

Tags in this story

Crypto assets, crypto fraud, Europe, European Commission, European Parliament, Financial Conduct Authority (FCA), ico fraud, Michael K. McKibben, One Coin, Onecoin Pyramid, Ponzi Schemes

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