Block by Block: CSSF clarifies Crypto-Assets Framework for Luxembourg Funds
On 4 February 2026, the Commission de Surveillance du Secteur Financier (“CSSF”) published an updated version of its FAQ on crypto-assets – undertakings for collective investment1 (“FAQ”).
- Published
- in Industry Updates
Background
The FAQ has been updated to reflect the entry into force and application of Regulation (EU) 2023/1114 on markets in crypto-assets (“MiCAR”) and introduces several changes that soften the CSSF’s position on the scope and conditions applicable to undertakings for collective investment in transferable securities (“UCITS”), alternative investment funds (“AIFs”), and their investment fund managers (“IFMs”) when investing in crypto-assets.
CSSF FAQ
Terminology Change
Throughout the FAQ, the CSSF has replaced the term “virtual assets” with “crypto-assets”, as defined in Article 3(1), point 5 of MiCAR.
Indirect Crypto-Asset Exposure Now Permitted for UCITS
One of the most notable developments is the CSSF’s departure from its previous blanket prohibition on UCITS investing (directly or indirectly) in crypto-assets. Subject to certain conditions, UCITS may now obtain indirect exposure to crypto-assets of up to 10% of their net asset value (“NAV”). In particular:
- such indirect investments must at all times qualify as transferable securities within the meaning of Article 1(34) of the law of 17 December 2010 relating to undertakings for collective investment, as amended, and the Grand-ducal regulation of 8 February 2008 and must not embed derivatives; and
- UCITS must inform the CSSF of their intention to pursue such investments in a timely manner.
The CSSF has also extended certain obligations that were previously applicable only to AIFs to UCITS engaging in indirect crypto-asset investments. Specifically, such UCITS must now update their risk management policy and provide investors with transparency regarding these investments.
New Framework for Retail AIFs
The CSSF has similarly revised its position with respect to AIFs open to retail investors. Retail AIFs may now invest directly or indirectly in crypto-assets, subject to a limit of 10% of their NAV. By contrast, the CSSF has maintained its previous position for AIFs marketed to well-informed investors. Such funds remain permitted to invest both directly and indirectly in crypto-assets falling within the scope of MiCAR without being subject to any concentration limit.
The CSSF has also confirmed that investments by AIFs in crypto-assets should not, as a general matter, preclude compliance with and application of existing regulatory requirements. As described in the FAQ, these requirements include undertaking a case-by-case risk assessment, having adequate internal control functions, providing transparent and timely information to investors, and updating the fund documentation and the risk management policy.
Licence Extension Requirements for IFMs
The FAQ also introduces a more permissive approach to licensing requirements for alternative investment fund managers (“AIFMs”). Previously, any level of exposure to crypto-assets triggered certain licensing obligations. Under the revised framework, the “Other-Other Fund-Crypto-assets” licence is now required only where a Luxembourg AIFM manages, or intends to manage, an AIF that invests more than 10% of its NAV in crypto-assets.
The CSSF has not changed its position with regard to AIFs investing in target funds with underlying crypto-assets. An IFM is not required to hold a licence to manage crypto-assets where the AIF it manages gains exposure to crypto-assets through one or more target funds. However, if an AIF invests more than 20% of its NAV in target funds that invest in crypto-assets, the IFM must be authorised to manage “fund of funds” strategies.
Further Information
If you would like further information, please liaise with any of the contacts on the page or your usual Maples Group contact.
