On 29 November 2021, the Commission de Surveillance du Secteur Financier (CSSF) published FAQs covering virtual assets.

Summary of items covered:

• The ability of UCITS and AIFs to invest (directly and indirect) in virtual assets and the depository duties linked to virtual assets
• Authorised Investment Fund Managers which intend to manage AIFs, regulated or not, investing in virtual assets, are required to obtain prior authorisation from the CSSF for the strategy “Other-Other Fund-Virtual assets” and the additional requirements and documents to be submitted as part of the extension application
• The Responsable du Contrôle (RC) and the Responsable du Respect (RR) of supervised entities should demonstrate, an adequate understanding of the new ML, TF, Proliferation Financing risks posed by virtual assets and the necessary measures to mitigate them

CSSF’s guidance on virtual assets can be found here.

FAQs - Virtual Assets for UCIs can be found here.

FAQs for credit institutions will be published during the second half of December 2021.