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FAQ Crypto-Assets – Undertakings for collective investment (Updated)

AI Analysis

Executive Summary

The CSSF has released Version 7 of its FAQ on Crypto-Assets for Undertakings for Collective Investment, updated on February 4, 2026, to reflect the entry into force of the Markets in Crypto-Assets Regulation (MiCAR). This guidance establishes binding investment limits, authorization requirements, and risk management standards for UCITS and AIFs investing in crypto-assets, fundamentally reshaping how Luxembourg-regulated collective investment schemes can engage with digital assets.

What Changed

The most significant regulatory modifications in Version 7 include: Investment Limits for UCITS UCITS may invest indirectly in crypto-assets for a maximum of 10% of their net asset value (NAV). These indirect investments are limited to transferable securities that do not embed derivatives in accordance with Article 10 of the Grand-ducal Regulation of 8. Investment Limits for AIFs AIFs open to retail investors other than well-informed investors may invest in crypto-assets for a maximum of 10% of their NAV. However, AIFs may invest directly and indirectly in crypto-assets under MiCAR's scope, provided such investments do not prevent compliance with existing regulatory requirements. Authorization Requirements for Elevated Exposures Any AIFM intending to manage an AIF investing in crypto-as

What You Need To Do

  • *Immediate Compliance Steps
  • *Portfolio Audit
  • *Investment Policy Updates
  • *Risk Management Assessment
  • *Investor Notification
  • *CSSF Notification

Key Dates

February 4, 2026 - FAQ Version 7 effective date (entry into force of MiCAR alignment)
July 1, 2026 - Deadline for Virtual Asset Service Providers (VASPs) to transition to CASP authorization or cease operations DEADLINE
No specific implementation grace period - The FAQ does not specify a transition period for existing funds exceeding the 10% limit; firms should clarify this with the CSSF immediately

Compliance Impact

Urgency Rating: HIGH

Who is Affected

*Primary Stakeholders:UCITS Management CompaniesAlternative Investment Fund Managers (AIFMs)asset exposure levelsAIFs Open to Retail Investorsinformed investors"Crypto-Asset Service Providers (CASPs)*Secondary Stakeholders:

Summary

Version 7 – 04/02/2026

Relevant Firm Types

Asset ManagerHedge FundFintech
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