CSSF updates its FAQ on Crypto-Assets for Undertakings for Collective Investment
On 4 February 2026, the Commission de Surveillance du Secteur Financier (CSSF) published Version 7 of its FAQ on Crypto-Assets – Undertakings for Collective Investment, following the entry into force of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCAR). This update replaces previous references to “virtual assets” with “crypto-assets” and further clarifies the regulatory framework applicable to Luxembourg investment funds.
The CSSF confirms that UCITS may only obtain indirect exposure to crypto-assets, subject to a 10% limit of net asset value (NAV) and provided that such exposure is achieved through eligible transferable securities without embedded derivatives. UCITS managers must assess the impact of these investments on the fund’s risk profile, adapt their risk management and disclosure framework accordingly, and notify the CSSF in advance.
With respect to alternative investment funds (AIFs), the FAQ reiterates that AIFs may invest directly or indirectly in crypto-assets. AIFs marketed to retail investors other than well-informed investors remain subject to a 10% NAV cap, whereas no quantitative restriction applies to AIFs reserved to well-informed or professional investors, subject to appropriate governance, risk management, valuation policies and investor disclosures.
The FAQ further clarifies that Luxembourg authorised investment fund managers managing AIFs with crypto-asset exposure exceeding 10% of NAV must obtain a specific extension of authorisation under the strategy “Other – Other – Fund – Crypto-assets”. The application must notably address custody arrangements, valuation methodology, AML/CFT considerations and the manager’s expertise in crypto-assets.
In addition, the CSSF places particular emphasis on money laundering, terrorist financing and proliferation financing risks associated with crypto-assets. Investment fund managers investing directly or indirectly in crypto-assets are expected to implement mitigation measures commensurate with these heightened risks. The CSSF expects the Responsable du Contrôle (RC) and the Responsable du Respect (RR) to demonstrate a thorough understanding of the specific AML/CFT risks linked to crypto-assets, taking into account Luxembourg risk assessments and relevant FATF guidance, and to ensure that appropriate due diligence is performed on the assets.
Finally, the FAQ confirms that Luxembourg depositaries may act for investment funds investing directly in crypto-assets, subject to appropriate organisational and operational safeguards and prior notification to the CSSF. Depending on the custody model, responsibility for safekeeping will lie either with the depositary or with a specialised crypto-asset service provider authorised or notified under MiCAR.
This updated FAQ provides further regulatory clarity for market participants considering crypto-asset exposure within Luxembourg fund structures, while confirming the CSSF’s cautious and risk-based supervisory approach.
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