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Crypto fraud: European Commission opposes compensation for victims

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TL;DR

  • Crypto fraud victims petitions the European Union Parliament
  • European Commission says it lacks competence. 

The European Commission has made it known  that it could not commit to a fund that victims of crypto fraud can draw from in situations where they might have been defrauded.

An association of victims of crypto fraud had appealed to the European Union Parliament (EUP) advising that a superfund should be created and it should be funded with $0.0001 per dollar on every crypto transaction that happens on the continent.

The European Commission made it known that most crypto frauds happen outside of the continent and that the commission did not have the personnel nor competence and the wherewithal to create such funding. 

The commission had hitherto rejected the same petition sent to it by the victim’s association. 

In defending its position to the EUP, EC made it known that victims of crypto fraud should rely on their existing national laws and law enforcement agents to help them in the recovery of their funds. And they also can seek to be compensated through the currently available means.

However, EU compensation rules can still be applied in some instances.

Crypto fraud victims not satisfied with EC’sEC’s response 

The Crypto fraud victims have expressed their displeasure at the response the EC has offered them as they have labelled the EC’sEC’s reaction to being anti-consumer.

Jonathan Levy, a lawyer who spoke on behalf of the victims, said that the EC grants hundreds of millions of dollars as investment grants and innovation awards to the blockchain.  He also said the commission defence of a lack of capability is false as they actually might have some level of competence to perform oversight functions on some virtual crypto assets.

Recall that the EUP had said that a minimum of $5 billion fraud was always committed in cryptocurrency on the continent.

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Kamsi King

King Kamsi is a fintech and digital currency writer and enthusiast. He is keenly interested in blockchain and cryptocurrency and their global adoption. When not busy with writing, he can be found hobnobbing in forums with the best minds in crypto, both developers and startup founders.

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