Luxembourg Waves Red Flag on Crypto Risks

In Luxembourg, virtual asset service providers (VASPs) are now flagged as high-risk for money laundering in the country's 2025 National Risk Assessment. This classification stems from concerns over crypto's potential for financial crime, reflecting the industry's growing challenge due to transaction volume, global reach, and the use of cross-border channels. The European Union, with Luxembourg as a founding member, is striving to regulate the cryptocurrency sector through the Markets in Crypto-Assets (MiCA) framework. Despite these efforts, crypto remains a popular avenue for illicit activities like money laundering, as evidenced by recent arrests across Europe and Asia.