A petition has been submitted to the European Parliament for the implementation of a plan to compensate victims associated with cryptocurrencies. The crimes mentioned in the 0421/2020 petition include fraud, piracy and blackmail.

The author of the petition represents the victim of Bitsane’s alleged fraud

According to the author’s lawyer Jonathan Levy (Jonathan Levy), the petition requires the European Union to implement a series of regulatory programs to “compensate victims of criminal activities related to cryptocurrencies.”

He pointed out that so far, the European Union (“EU”) has not set aside any crypto-asset funds to compensate victims of directly related criminal activities. The lawyer recommended a fee of 0.000001 cents per euro for encrypted transactions, which will be transferred to the “victim super fund.”

According to the petition, victims of encryption-related crimes “try to make up for losses in different ways,” such as legal proceedings in European courts. However, Levy said, “Due to the multi-jurisdictional nature of encrypted transactions, none of these remedies have been successful.”

The document goes on to elaborate on the matter:

Petitioner [Levy] It was pointed out that neither the Commission nor the European Ombudsman declared that they have jurisdiction over the matter. He urged the European Parliament to take direct action to help victims of active cryptocurrency crimes as part of its EU strategy to establish a true single market for digital financial services.

Taxation is known in the crypto sector for representing the victims of the alleged withdrawal of the Irish crypto exchange Bitsane from the scam. He used the case as an example to illustrate how the Irish authorities “had little or no completion” to track stolen funds.

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

The European Commission refuses to create a cryptocurrency fraud compensation fund in 2020

So far, the 0421/2020 petition has 48 supporters. Moreover, its status remains a “supporter” on the European Parliament website.

But the feasibility of the petition is still questionable. On October 21, 2020, news.Bitcoin.com reported that the European Commission (EC) expressed its opposition to the establishment of a super fund for crypto crime victims with a handling fee of 0.0001 cents per euro.

The Commission believes that most cryptocurrency crimes occur outside the jurisdiction of the European Union. Moreover, they claim to be unable to establish and manage such funds.

What is your opinion on the petition submitted to the European Parliament? Let us know in the comments section below.

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