Luxembourg has classified virtual asset service providers (VASP) as high -risk stretches for money laundering in its national risk assessment (NRA) in 2025, highlighting concerns about the exposure of cryptographic industry to financial crime.
According to the report, the inherent level of risk of valps is deemed “high”, motivated by factors, in particular the volume of transactions, the scope of customers, distribution channels, legal structures and the international scope of operations.
The NRA has identified the VALPs as a risk emerge in its 2020 report after “a detailed assessment of the risks inherent in the ML emerging from virtual assets”. This was followed by a report by NRA in 2022, considering “the risks associated with cryptographic assets and virtual currencies as very high”, because, among others, they are based on the Internet and cross -border.
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Regulation of evolutionary EU cryptography
The EU, of which Luxembourg is a founding member, has worked to regulate the cryptocurrency industry. A key element of this effort is the framework of the Crypto-Aset markets (Mica), which is designed to unify cryptographic regulations in the 27 EU member states.
Since January, cryptographic asset service providers have started to acquire licenses to operate legally within the EU. This includes the exchange of Kraken cryptocurrency launch of regulated derivative trading and the crypto.com competitor obtaining a license allowing him to do the same, both this month.
Mica also establishes a new set of requirements for stablescoins. The Stablescoin market leader behind the USDT (USDT), Tether, refuses to comply with the new rules and has been struck off on Crypto.com, Coinbase and the main crypto exchange binance on their EU platforms.
In relation: French prosecutors have surveyed the binance on money laundering, the allegations of fraud: report
Money laundering with crypto
As the role of cryptocurrencies in the wider financial ecosystem increases, their popularity for money laundering. Earlier this month, Hong Kong police arrested 12 people involved in a cross-border money laundering program that was based on crypto and more than 500 Stooge bank accounts to whiten $ 118 million in Hong Kong ($ 15 million).
According to information this month, European police have arrested 17 suspects of a “mafia crypto bank” for having pretended to blend more than 21 million euros (23.5 million dollars) in crypto for criminal entities based in the Middle East and China. Following the procedure, 4.5 million euros ($ 5 million) of items were seized, especially in cash, in crypto, 18 vehicles, four hunting rifles and several electronic devices.
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