Luxembourg Financial Services Regulator CSSF Updates Its Position On Crypto-Assets In Investment Funds: What Has Changed Since 2022?

Introduction

In January 2022, we published a client alert¹ examining the initial FAQ issued by Luxembourg’s financial sector regulator—the Commission de Surveillance du Secteur Financier (CSSF)—on the use of what it then called “virtual assets” by investment funds and credit institutions. That FAQ set out a cautious but constructive framework, permitting limited indirect exposure for undertakings in collective investments (UCITS) and opening the door to direct investment for certain alternative investment funds (AIFs).

Since then, the regulatory landscape has changed considerably. Most notably, the European Union’s Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114) (MiCAR) has entered into force, bringing crypto-assets within a comprehensive EU-wide regulatory framework for the first time.² Against that backdrop, the CSSF published Version 7 of its FAQ on 4 February 2026—a root-and-branch revision of the entire document, updating every single question and replacing all