Digital payment firms navigate new crypto regulations in Luxembourg

Major digital payment providers are navigating new regulatory landscapes in Luxembourg. PayPal has announced a pause on cryptocurrency purchases for its European users in the country, effective June 25, 2026. This decision is driven by the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF), which requires companies to collect and verify detailed customer data, such as tax identification numbers and addresses, to facilitate international tax reporting.

Simultaneously, Alipay Europe has launched a regulated electronic money token in Luxembourg known as the Bettr Settlement Token (BREUR). Linked to the euro, this token operates under the European Union’s Markets in Crypto-Assets (MiCAR) framework. Issued by AIEU Services Limited S.A., the token is designed to enable faster and more cost-effective internal transfers between Ant International’s European subsidiaries and partner banks, bypassing traditional banking delays. Deutsche Bank is cited as a partner for custody and settlement services.