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ARTICLE · 04 FEBRUARY 2022

CSSF Guidance On Virtual Assets (Credit Institutions)

ELVINGER HOSS PRUSSEN, société anonyme
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On 23 December 2021, in an FAQ Virtual Assets – Credit institutions ("FAQ") , the CSSF provided guidance for credit institutions wishing to offer virtual asset services; this was updated on 4 January 2022.

LuxembourgFinance and Banking
Elvinger Hoss Prussen
Elvinger Hoss Prussen

On 23 December 2021, in an FAQ Virtual Assets - Credit institutions ("FAQ"), the CSSF provided guidance for credit institutions wishing to offer virtual asset services; this was updated on 4 January 2022.

The FAQ currently addresses seven questions:

1. Are credit institutions allowed to invest in virtual assets?

Yes. The CSSF recalls that banking regulation does not prohibit credit institutions from directly investing in virtual assets but certain accounting and capital-related considerations apply.

  • Accounting considerations: since virtual assets lack physical substance, they should be recognised as intangible unless they qualify for the accounting treatment applied to other cash asset classes like cash equivalents or financial instruments.

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