Luxembourg CSSF Updates Crypto-Asset Investment Fund Guidance to Version 7, February 2026

On 4 February 2026, the Commission de Surveillance du Secteur Financier (CSSF) published Version 7 of its FAQ on Crypto-Assets for Undertakings for Collective Investment (UCI). The document is effective immediately upon publication and applies to all Luxembourg-authorised investment funds that hold or seek to hold crypto-assets. It reflects the regulatory developments introduced under Regulation (EU) 2023/1114 (MiCA) and the adjustments Luxembourg funds must make to operate within that regime.

The FAQ draws its authority from the CSSF's supervisory powers under the Law of 17 December 2010 on undertakings for collective investment and the Law of 12 July 2013 on alternative investment fund managers, read together with MiCA, which entered into force on 30 December 2024. Question 10 of the FAQ specifies that a UCI wishing to invest in crypto-assets must confirm in its prospectus or issuing document that the investment policy permits such exposure and must disclose applicable risks. Questions 14 through 17 address custody arrangements, requiring that crypto-assets be held by a depositary or, where technically impossible, by a sub-custodian in accordance with MiCA Article 70 custody rules, with full written justification filed with the CSSF.

For Luxembourg fund managers and promoters, the update requires immediate action on three fronts. First, fund documents for any UCI with existing or proposed crypto-asset exposure must be reviewed and updated to include the required disclosure language. Second, depositary agreements must be assessed to confirm custody arrangements comply with MiCA Article 70. Third, funds that currently hold crypto-assets through arrangements not meeting the updated requirements must regularise those positions and notify the CSSF within the timeframe indicated in the FAQ. Failure to comply exposes managers to supervisory measures under CSSF circular powers and the Law of 17 December 2010.

The FAQ does not introduce a grandfathering window for UCIs that already hold crypto-assets under pre-MiCA arrangements. Funds that obtained approval before the MiCA transitional period ended must still comply with the updated custody and disclosure requirements by the dates set in CSSF guidance. Open questions remain regarding the treatment of crypto-asset derivatives held indirectly through structured products and tokenised fund units, as the FAQ does not address those instruments directly. Managers expecting to take positions in those categories should seek CSSF confirmation before proceeding.

Our firm advises investment fund managers, promoters, and depositary institutions on MiCA compliance, Luxembourg fund structuring, and regulatory submissions to the CSSF. We maintain a partnership network with Luxembourg-based counsel for matters requiring local regulatory representation. We are available to assist with document reviews, CSSF notifications, and custody agreement assessments. Areas of work include crypto-asset fund authorisation, UCI prospectus updates, MiCA Article 70 custody analysis, depositary compliance, alternative investment fund manager licensing, and tokenised asset regulatory strategy.

Source: CSSF, FAQ Crypto-Assets – Undertakings for Collective Investment, Version 7, 04/02/2026, https://www.cssf.lu/wp-content/uploads/FAQ_Crypto_assets_UCI.pdf (confirmed 27 March 2026).

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