Is crypto legal in Luxembourg? Regulation & rules (2026)

The CSSF published Version 7 of its FAQ on crypto-assets, replacing all 'virtual asset' references with 'crypto-assets' to align with MiCA and allowing UCITS to obtain indirect crypto exposure of up to 10% of NAV. It marks the regulator's most permissive stance to date for Luxembourg funds.

The CSSF granted Bitstamp a Crypto-Asset Service Provider (CASP) authorisation under MiCA, covering trading, order execution and custody with an EEA passport. It was the first full CASP licence issued by the CSSF, signalling Luxembourg's role as an EU crypto hub.

The Law of 6 February 2025 formally named the CSSF as the sole national competent authority for MiCA, vesting all CASP licensing, supervision and enforcement powers in the regulator. It completed Luxembourg's domestic anchoring of the EU regime.

The Law of 20 December 2024 entered into force, introducing an optional 'control agent' model and broadening DLT issuance to equities, fund units and tokenised physical assets. It deepened Luxembourg's tokenisation framework beyond debt instruments.

The Law of 15 March 2023 implemented EU Regulation 2022/858, letting market infrastructures trade and settle tokenised securities on DLT and recognising DLT for financial collateral arrangements. It extended Luxembourg's blockchain framework to market-infrastructure level.

Amendments to the 2004 AML/CFT law transposed the EU 5th AML Directive, defining virtual assets and requiring VASPs to register with and be AML-supervised by the CSSF. This was Luxembourg's first dedicated legal regime for crypto businesses.