{"id":"circulars/faq-faq-crypto-assets-undertakings-for-collective-investment","title":"FAQ Crypto-Assets – Undertakings for collective investment","type":"circular","date":"2021-11-29","kind":"faq","html":"<p>FAQ Crypto-Assets – Undertakings for collective investment is a CSSF FAQ, published 29 November 2021.</p>\n<p>Relevant for: AIFMs, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Other specific authorisations, registrations and information, Part II UCIs, Pension funds, Securitisation undertakings, SICARs, SIFs, UCITS, Virtual asset service providers (VASPs).</p>\n<p>Keywords: Virtual assets.</p>\n<h2>Text</h2>\n<p>FAQ Crypto-Assets – Undertakings for collective investment Version 8 – 24/04/2026</p>\n<p>FAQ Crypto-assets - Undertakings for collective investment Version 8 – 24/04/2026 Update information</p>\n<p>24/04/2026</p>\n<p>Modification of question 1</p>\n<p>04/02/2026</p>\n<p>General update of the FAQ following the entry into force of MiCAR and other significant modifications Replacement of “virtual assets” by “crypto-assets”</p>\n<p>22/02/2024</p>\n<p>Modification of question 1 and 2</p>\n<p>18/12/2023</p>\n<p>Modification of question 3</p>\n<p>06/04/2023</p>\n<p>Modification of question 2 and publication of question 3A</p>\n<p>15/03/2022</p>\n<p>Publication of question 6</p>\n<p>04/01/2022</p>\n<p>Update of question 2 and publication of question 5</p>\n<p>29/11/2021</p>\n<p>First publication</p>\n<p>This document will be updated when necessary and the CSSF reserves the right to adapt its approach to any matter covered by the FAQ at any time. You should regularly check the website of the CSSF in relation to any matter of importance to you to see if questions have been added and/or positions have been adapted.</p>\n<p>FAQ CRYPTO-ASSETS - UNDERTAKINGS FOR COLLECTIVE INVESTMENT Version 8 – 24/04/2026</p>\n<p>Table of contents Q1. May a UCITS invest in crypto-assets? Modified on 24/04/2026 Q2. May an AIF invest in crypto-assets? Modified on 04/02/2026 Q3. Do Luxembourg Investment Fund Managers need any authorisation for the management of crypto-assets? Modified on 04/02/2026 Q3 a) Is this “Other-Other Fund-Crypto-assets” license also required in case of management of AIFs investing in target funds with underlying crypto-assets? Modified on 04/02/2026 Q4. Are there any specific considerations regarding the mitigation of the Money Laundering and Terrorist Financing risks? Modified on 04/02/2026 Q5. May a Luxembourg depositary act as depositary for investment funds investing directly in crypto-assets? Modified on 04/02/2026 Q6. What is expected from Luxembourg Investment Fund Managers in terms of AML/CFT Due Diligence on crypto-assets? Modified on 04/02/2026</p>\n<p>FAQ CRYPTO-ASSETS - UNDERTAKINGS FOR COLLECTIVE INVESTMENT Version 8 – 24/04/2026</p>\n<p>Q1. May a UCITS invest in crypto-assets? Modified on 24/04/2026 Entities under the prudential supervision of the CSSF must bear in mind that investing in cryptoassets (as defined in Article 3(1), point (5) of Regulation (EU) 2023/1114 (hereinafter “MiCAR”), except where falling within the categories listed in Article 2(2), Articles (3) and (4) of MiCAR or otherwise qualifying as funds), is not suitable for all kind of investment objectives. UCITS may, under the conditions set forth in this FAQ, invest indirectly in crypto-assets for a maximum of up to 10% of their net asset value (NAV). For UCITS, such indirect investments in financial instruments with crypto-assets as an underlying asset are limited to transferable securities that do not embed any derivatives in accordance with Article 10 of Grand-ducal Regulation of 8 February 2008. These investments must, at all times, qualify as transferable securities, in accordance with Article 1(34) of the Law of 17 December 2010, Article 2 of the Grand-ducal Regulation of 8 February 2008 and point 17 of Circular CSSF 08/380. These indirect investments in crypto-assets do not necessarily fall under Article 41(2)(a) of the Law of 17 December 2010 if they qualify as transferable securities pursuant to Article 41(1)(a) to (d) of the same law. Crypto-assets present specificities such as their volatility, liquidity and technological risk, which could significantly affect the risk profile of UCITS. The CSSF draws attention to the integration phase of crypto-assets into the investment policy and reiterates the importance of having adequate internal control functions, emphasising their key role in approving new products/investment strategies. Investment managers should make a case-by-case assessment of the impact of these investments on the risk profile of the investment fund and update their risk management policy accordingly.</p>\n<p>The text above is the opening of the document; the PDF carries the whole.</p>\n<p><a href=\"https://www.cssf.lu/en/Document/faq-crypto-assets-undertakings-for-collective-investment/\" target=\"_blank\" rel=\"noreferrer\">Document page</a>, <a href=\"https://www.cssf.lu/wp-content/uploads/FAQ-Crypto-assets-UCI.pdf\" target=\"_blank\" rel=\"noreferrer\">PDF</a>. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.</p>"}