Luxembourg Tightens Regulations on Cryptocurrency Services to Combat Money Laundering

Luxembourg is taking a proactive approach to combat money laundering in the cryptocurrency sector by tightening its regulations on service providers. This move comes from the country’s National Risk Assessment (NRA), highlighting that virtual asset service providers (VASPs) are particularly vulnerable to illicit financial activities. The regulatory body’s focus underscores the growing concern about cryptocurrencies and their inherent anonymity, which raises concerns regarding potential use in illegal transactions.