The CSSF has updated its FAQ Crypto-Assets - Undertakings for collective investment (previously FAQ Virtual Assets - Undertakings for collective investment) and draws the attention to the following points
Executive Summary
The Commission de Surveillance du Secteur Financier (CSSF) has updated its FAQ on crypto-asset investments by undertakings for collective investment, effective February 4, 2026, to align with the EU's Markets in Crypto-Assets Regulation (MiCAR). This update establishes clear investment limits and licensing requirements for UCITS and AIFs investing in crypto-assets, fundamentally reshaping how Luxembourg-regulated funds can structure crypto exposure.
What Changed
The regulatory framework introduces several material modifications: Investment Exposure Limits UCITS may invest indirectly in crypto-assets for a maximum of 10% of their net asset value (NAV). These indirect investments are restricted to transferable securities that do not embed derivatives. AIFs open to retail investors other than well-informed investors face the same 10% NAV ceiling. MiCAR Alignment The FAQ modifications directly reflect the entry into force of Regulation (EU) 2023/1114 on markets in crypto-assets. This represents a significant regulatory shift from the previous virtual assets framework, introducing more granular requirements around asset classification, risk management, and operational controls. Licensing Requirements for Higher Exposures Alternative Investment Fu
Suggested Considerations
- *For UCITS Managers:
- by-case assessment of crypto-asset investment impact on fund risk profiles
- specific risks (volatility, liquidity, technological risk)
- asset investments
- *For AIFMs Managing AIFs with Crypto Exposure:
- *For exposures ≤10% of NAV: Conduct AML/CTF analysis on the assets side and document risk management policies addressing crypto-specific risks
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
References
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Summary
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