High risk? Luxembourg is a historically very important country for finance in Europe and this small country has attracted many financial institutions thanks to advantageous taxation. Recently, local authorities have claimed to be worried about the emergence of cryptocurrencies and in a report on money laundering, Luxembourg has classified Crypto companies as at high risk.
- Luxembourg has classified cryptocurrency companies as at high risk in terms of money laundering.
- The European Union regulatory framework of the European Union aims to unify the regulation of cryptocurrencies, aroused the reluctance of certain major actors such as Tether.
Luxembourg worried by Crypto companies
On May 26, the government of Luxembourg published his report On the national assessment of the risks of money laundering and financing of terrorism. We learn that Luxembourg considers the Virtual asset service providers (VASP) as being high risk in the matter.
This evaluation is based on several factorssuch as the volume of transactions, the scope of customers, distribution channels, legal structures and the international scope of operations. In addition, the report stresses that Vasp Faced with emerging risks inherent in virtual assets, which have been identified for the first time in the 2020 report.
Increasingly strict regulations
In 2022, the authors had even qualified these risks of very high Due to the cross -border nature of cryptocurrencies and the fact that they were circulating on the internet. This classification of Vasp as high -risk entities intervenes in a context where theEuropean Union Actively works on the regulation of the cryptocurrency industry.
The regulatory framework Markets in Crypto-Astets (Mica) is at the heart of these efforts and it aims to unify the regulations of cryptocurrencies in the 27 EU member states, of which the Luxembourg.
From Januarydigital asset service providers have started to acquire licenses to operate legally in the EU. For example, in May, cryptocurrency exchange platforms Kraken And Crypto.com have obtained licenses to offer regulated derivative products.
Mica also establishes new requirements for stablecoins and certain major market players, such as Tether, have expressed their reluctance to comply with these new rules. Inevitably, trading against The USDT has been suspended on several platforms. Since you are told that it is dangerous.