EU and 8 nations sign Warsaw Protocol to combat cryptocurrency crime

On October 14, 2026, the European Union and eight allied nations, including the UK, Greece, and Luxembourg, signed an Additional Protocol to the Council of Europe's Warsaw Convention. The treaty expands enforcement frameworks to cover crypto assets and virtual asset service providers, allowing financial intelligence units to execute instant asset freezes without prior notice. Confiscated sums exceeding 10,000 euros will be split equally among participating nations.

Adoption and scope of the protocol

• ▪On October 14, 2026, the European Union and eight nations—Georgia, Greece, Hungary, Luxembourg, Monaco, Montenegro, San Marino, and the United Kingdom—signed an Additional Protocol to modernise the Council of Europe's Warsaw Convention.
• ▪The Warsaw Convention Additional Protocol modernizes the original treaty by expanding its scope to cover virtual assets, crypto assets, and virtual asset service providers (VASPs) to combat money laundering and terrorism financing.
• ▪Council of Europe member states originally adopted the new crypto asset recovery provisions for the Warsaw Convention in May 2026.

Emergency asset freezing and confiscation

• ▪The Warsaw Convention Additional Protocol expands the powers of national Financial Intelligence Units (FIUs), allowing them to suspend crypto transactions if they suspect links to money laundering.
• ▪The Warsaw Convention Additional Protocol enables the urgent confiscation of virtual assets without prior notice when a transaction risk is identified.

Management and disposition of recovered assets

• ▪The Warsaw Convention Additional Protocol prompts signatory nations to establish specialized Asset Recovery Offices to confiscate digital assets and Asset Management Offices to hold digital assets involved in illicit activities.
• ▪Recovered funds exceeding 10,000 euros resulting from cross-border crypto enforcement operations will be split equally among the nations involved.
• ▪The Warsaw Convention Additional Protocol prompts signatory states to pass legislation allowing confiscated crypto assets to be repurposed for social reuse, public interest, or other specific aims.
• ▪Under the Warsaw Convention Additional Protocol, affected parties are granted priority in reclaiming confiscated virtual assets.