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Luxembourg flags crypto companies as high risk for money laundering

Luxembourg classified virtual asset service providers (VASPs) as high-risk entities for money laundering in its 2025 National Risk Assessment (NRA), highlighting concerns over the crypto industry’s exposure to financial crime.

According to the report, the inherent risk level of VASPs is deemed “High,” driven by factors including transaction volume, client reach, distribution channels, legal structures and the international scope of operations.

The NRA identified VASPs as an emerging risk in its 2020 report after “a detailed assessment of ML inherent risks emerging from virtual assets.” This was followed by a 2022 NRA report deeming “the risks associated with crypto assets and virtual currencies as very high,” because, among other things, they are internet-based and cross-border.

Related: Blender and Sinbad operators face US money laundering charges

EU’s evolving crypto regulation

The European Union, of which Luxembourg is a founding member, has been working to regulate the cryptocurrency industry. A key part of this effort is the Markets in Crypto-Assets (MiCA) framework, which is designed to unify crypto regulation across all 27 EU member states.

Since January, crypto asset service providers have started acquiring licenses to operate legally within the EU. In May, cryptocurrency exchange Kraken launched regulated derivatives trading, and competitor Crypto.com secured a license allowing it to do the same.

MiCA also establishes a new set of requirements for stablecoins. The stablecoin market leader behind USDt (USDT), Tether, refuses to comply with the new rules and was delisted on Crypto.com, Coinbase and leading crypto exchange Binance on their EU platforms.

Related: French prosecutors probe Binance over money laundering, fraud allegations: Report

Money laundering with crypto

As the role of cryptocurrencies in the broader financial ecosystem increases, so does their popularity for money laundering. Earlier this month, Hong Kong police arrested 12 people involved in a cross-border money laundering scheme that relied on crypto and over 500 stooge bank accounts to launder 118 million Hong Kong dollars ($15 million).

Luxembourg
Crypto value received by illicit addresses per year. Source: Chainalysis

According to reports this month, European law enforcement arrested 17 suspects of a “mafia crypto bank” for allegedly laundering over 21 million euros ($23.5 million) in crypto for Middle East and China-based criminal entities. As a result of the proceedings, 4.5 million euros ($5 million) worth of items were seized, including cash, crypto, 18 vehicles, four shotguns and several electronic devices.

Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express

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‘I wish I’d never met him’: Peter Mandelson ‘regrets’ association with Jeffrey Epstein

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'I wish I'd never met him': Peter Mandelson 'regrets' association with Jeffrey Epstein

Peter Mandelson, the UK ambassador to the United States, has told Sky News he “regrets” his association with paedophile Jeffrey Epstein.

Lord Mandelson‘s links to the late billionaire were exposed in a 2019 report by JP Morgan bank, filed in a New York court.

Epstein killed himself in August of that year while awaiting trial on charges of sex trafficking minors.

He had previously served an 18-month sentence after pleading guilty to procuring a person under the age of 18 for prostitution.

Whilst serving that sentence, the JP Morgan report suggests that Mr Mandelson stayed at Epstein’s Manhattan flat.

Epstein wrote to his private banker on 17 June 2009: “Peter will be staying at 71st over weekend…”

At the time, Lord Mandelson was the Business Secretary in the UK government under then-Prime Minister Gordon Brown. He was appointed UK ambassador to the United States in December 2024.

Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP
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Jeffrey Epstein. File pic: New York State Sex Offender Registry via AP

Sky News asked him if he did, indeed, stay at Epstein’s flat while the disgraced financier was in jail.

He replied: “I’m not answering any questions about him. My knowledge of him is something I regret, I wish I’d never met him in the first place.”

Asked why he had an association with Epstein whilst he was in jail, Lord Mandelson replied: “Why did many people meet him? He was a prolific networker. And I wish I’d never met him in the first place.”

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As US ambassador, Lord Mandelson represents Britain’s interests in Washington and has vowed to treat Donald Trump‘s administration with “respect, seriousness and understanding of where they are coming from politically”.

This comes after Lord Mandelson described the US president as a “danger to the world”, for which he apologised earlier this year.

He told the Alain Elkann Interviews podcast in 2019: “What Donald Trump represents and believes is an anathema to mainstream British opinion.”

President Donald Trump, center, with from l-r., Vice President JD Vance, and Britian's ambassador to the United States Peter Mandelson, making remarks on a trade deal between U.S. and U.K. in the Oval Office of the White House, Thursday, May 8, 2025, in Washington. (AP Photo/Evan Vucci)
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US President Donald Trump, vice president JD Vance, and UK ambassador to the US Peter Mandelson. Pic: AP

Mr Mandelson added: “Even those who have a sneaking admiration for Donald Trump because of his personality, nonetheless regard him as reckless, and a danger to the world.”

But in January this year, Lord Mandelson said he now considered his remarks “as ill-judged and wrong”.

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ZKPs can prove I’m old enough without telling you my age

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<div>ZKPs can prove I'm old enough without telling you my age</div>

<div>ZKPs can prove I'm old enough without telling you my age</div>

Opinion by: Andre Omietanski, General Counsel, and Amal Ibraymi, Legal Counsel at Aztec Labs

What if you could prove you’re over 18, without revealing your birthday, name, or anything else at all? Zero-knowledge proofs (ZKPs) make this hypothetical a reality and solve one of the key challenges online: verifying age without sacrificing privacy. 

The need for better age verification today

We’re witnessing an uptick in laws being proposed restricting minors’ access to social media and the internet, including in Australia, Florida, and China. To protect minors from inappropriate adult content, platform owners and governments often walk a tightrope between inaction and overreach. 

For example, the state of Louisiana in the US recently enacted a law meant to block minors from viewing porn. Sites required users to upload an ID before viewing content. The Free Speech Coalition challenged the law as unconstitutional, making the case that it infringed on First Amendment rights.

The lawsuit was eventually dismissed on procedural grounds. The reaction, however, highlights the dilemma facing policymakers and platforms: how to block minors without violating adults’ rights or creating new privacy risks.

Traditional age verification fails

Current age verification tools are either ineffective or invasive. Self-declaration is meaningless, since users can simply lie about their age. ID-based verification is overly invasive. No one should be required to upload their most sensitive documents, putting themselves at risk of data breaches and identity theft. 

Biometric solutions like fingerprints and face scans are convenient for users but raise important ethical, privacy, and security concerns. Biometric systems are not always accurate and may generate false positives and negatives. The irreversible nature of the data, which can’t be changed like a regular password can, is also less than ideal. 

Other methods, like behavioral tracking and AI-driven verification of browser patterns, are also problematic, using machine learning to analyze user interactions and identify patterns and anomalies, raising concerns of a surveillance culture.

ZKPs as the privacy-preserving solution

Zero-knowledge proofs present a compelling solution. Like a government ID provider, a trusted entity verifies the user’s age and generates a cryptographic proof confirming they are over the required age.

Websites only need to check the proof, not the excess personal data, ensuring privacy while keeping minors at the gates. No centralized data storage is required, alleviating the burden on platforms such as Google, Meta, and WhatsApp and eliminating the risk of data breaches. 

Recent: How zero-knowledge proofs can make AI fairer

Adopting and enforcing ZKPs at scale

ZKPs aren’t a silver bullet. They can be complex to implement. The notion of “don’t trust, verify,” proven by indisputable mathematics, may cause some regulatory skepticism. Policymakers may hesitate to trust cryptographic proofs over visible ID verification. 

There are occasions when companies may need to disclose personal information to authorities, such as during an investigation into financial crimes or government inquiries. This would challenge ZKPs, whose very intention is for platforms not to hold this data in the first place.

ZKPs also struggle with scalability and performance, being somewhat computationally intensive and tricky to program. Efficient implementation techniques are being explored, and breakthroughs, such as the Noir programming language, are making ZKPs more accessible to developers, driving the adoption of secure, privacy-first solutions. 

A safer, smarter future for age verification

Google’s move to adopt ZKPs for age verification is a promising signal that mainstream platforms are beginning to embrace privacy-preserving technologies. But to fully realize the potential of ZKPs, we need more than isolated solutions locked into proprietary ecosystems. 

Crypto-native wallets can go further. Open-source and permissionless blockchain-based systems offer interoperability, composability, and programmable identity. With a single proof, users can access a range of services across the open web — no need to start from scratch every time, or trust a single provider (Google) with their credentials.

ZKPs flip the script on online identity — proving what matters, without exposing anything else. They protect user privacy, help platforms stay compliant, and block minors from restricted content, all without creating new honeypots of sensitive data.

Google’s adoption of ZKPs shows mainstream momentum is building. But to truly transform digital identity, we must embrace crypto-native, decentralized systems that give users control over what they share and who they are online.

In an era defined by surveillance, ZKPs offer a better path forward — one that’s secure, private, and built for the future.

Opinion by: Andre Omietanski, General Counsel, and Amal Ibraymi, Legal Counsel at Aztec Labs.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Gisele Pelicot’s daughter says chemical castration ‘could be part of the solution’ for sex offenders

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Gisele Pelicot's daughter says chemical castration 'could be part of the solution' for sex offenders

The daughter of Gisele Pelicot has suggested chemical castration could be “one part of the solution” when there is “nothing else you can do” for sex offenders – like her father.

Caroline Darian’s father Dominique Pelicot admitted repeatedly drugging and raping his wife Gisele between 2011 and 2020, and inviting dozens of other men to their home in southern France to do the same.

Gisele decided to waive her right to anonymity to hold the trial of her husband and 50 other men in public, saying: “It is not for us to be ashamed, but for those men.”

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Speaking to Ali Fortescue on The Politics Hub, Ms Darian said the UK government’s plans to consider mandatory chemical castration could be “one part of the solution” for men like her father.

Gisele Pelicot. Pic: Reuters
Image:
Gisele Pelicot. Pic: Reuters

She said: “It’s probably one part of the solution because you know when you’re at that level of crime, that level of criminal, there is nothing else you can do.”

Asked if she believed “men like your father” could be rehabilitated, Ms Darian said “no” and “never”.

For ten years, Pelicot repeatedly sedated his wife and invited strangers to abuse her after advertising sex with her on a French swinging website.

Some denied the rape charges, claiming they believed Gisele had agreed to be drugged and was a willing participant in a sex game between the couple.

But all the men charged were found guilty of at least one offence, with nearly all convicted of rape, after a trial that shocked France and made headlines around the world.

The defendants were sentenced to a total of more than 400 years, with Pelicot being sentenced to 20 years in prison.

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Pelicot also took photos of his daughter Caroline semi-naked while she was asleep.

Ms Darian is pressing charges against her father, having accused him of drugging and raping her. Pelicot has denied this.

Speaking to French media, Beatrice Zavarro, Pelicot’s lawyer, said Ms Darian’s decision to press charges was “unsurprising”.

She added that prosecutors had said there were insufficient “objective elements” to accuse Pelicot of raping and using chemical submission on Ms Darian.

Justice Secretary Shabana Mahmood said last week that she will pursue “a nationwide rollout” of a scheme being piloted in southwest England to use medication to suppress the sexual drive of sex offenders.

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‘It’s a moment that will remain etched in my memory forever,’ David tells Sky News’ Siobhan Robbins.

Read more:
How Gisele Pelicot went from victim to feminist hero
Inside the depraved mind of ‘career criminal’ Dominique

It came after an independent review, led by the former justice secretary David Gauke, was commissioned by the government amid an overcrowding crisis in prisons in England and Wales.

The review recommended that chemical castration “may assist in management of suitable sex offenders both in prison and in the community”.

Ms Mahmood said she is “exploring whether mandating the approach is possible”. The trial is currently voluntary.

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