The European Union and eight allied countries became the first signatories of a new protocol aimed at crypto-related crime. The group includes Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino and the United Kingdom. They signed the Additional Protocol to the Council of Europe Convention on laundering, search, seizure and confiscation of proceeds from crime and on financing of terrorism, known as the Warsaw Convention.
What the protocol changes
The protocol brings virtual assets and virtual asset service providers into scope. It lets authorities move quickly on urgent confiscation of crypto assets without prior notice when there is transaction risk. Signatories are also expected to set up asset recovery offices and asset management offices for digital assets tied to illicit activity.
National financial intelligence units get more room to act. They can suspend crypto transactions when they suspect a money laundering link. People affected by confiscation get priority when reclaiming assets, according to the protocol. Amounts over 10,000 euros would be split equally among countries involved in recovery operations.
Why governments are acting
The Council of Europe member states adopted the provisions in May 2026. The move comes as officials try to bring crypto assets under more effective oversight and close gaps that criminals may use. Alain Berset, secretary general of the Council of Europe, said criminal money sustains organised crime and can buy influence in democracies. Taking that money away is a matter of democratic security, he said. No state can recover criminal assets across borders alone, and the protocol is meant to make cooperation easier.
The practical effect will depend on how quickly countries write the rules into national law. I think the asset management offices may matter most, because seized crypto needs secure custody and clear handling.
A test for cross-border crypto seizures
The protocol also asks signatory states to take legislative action so confiscated crypto can be used for social reuse, in the public interest or for other specific aims. That could prove sensitive. Crypto prices move, custody is technical and ownership claims can be messy. The first signers are a mix of EU and non-EU states, which may help test whether the model works beyond one legal system.
