CSSF updated FAQ for UCITS and AIFs investing in crypto-assets

On 4 February 2026, the Commission de Surveillance du Secteur Financier (“CSSF“) updated its FAQ on crypto-assets (previously FAQ on virtual assets) for undertakings in collective investment (“UCIs”) in order to take into account the entry into force and application of Regulation (EU) 2023/1114 on markets in crypto-assets (“MiCAR”) and to also introduce some other significant changes softening the CSSF position on the scope and conditions for UCITS and AIFs and their investment fund managers (“IFMs”) to invest in crypto-assets.

Compared to the previous version of its FAQ, the following main changes have been made by the CSSF:

• Possibility for UCITS to invest indirectly in crypto-assets up to 10% of their NAV – The CSSF relaxed its position for UCITS by allowing them to invest indirectly in crypto-assets for a maximum of up to 10% of their NAV, subject to certain conditions including, amongst other things, that such indirect investments must at all times qualify as transferable securities that do not embed a derivatives element within the meaning of UCITS rules, and that the CSSF must be informed of such plans in a timely manner. Additional conditions relating to risk management and transparency described below for AIFs also now apply to UCITS.
• Possibility for AIFs open to retail investors to invest directly or indirectly in crypto-assets up to 10% of their NAV  – The CSSF also relaxed its position for retail AIFs by now allowing them to invest directly or indirectly in crypto-assets for a maximum of up to 10% of their NAV, while maintaining its previous position for AIFs marketed to well-informed investors that are still allowed to invest both directly and indirectly in crypto-assets without any such limit. In both cases, however, the CSSF reaffirmed that investments by AIFs (be that aimed at well-informed or retail investors) in crypto-assets should not impede the application of and compliance with the existing regulatory requirements as described in the FAQ (e.g. proper risk assessment, adequate internal control functions, update of risk management policy, update of fund documentation and appropriate, transparent and timely information of investors).
• License extension for AIFMs managing AIFs invested in crypto-assets now applying to exposures exceeding 10% of the NAV – The CSSF again relaxed its position indicating that an “Other-Other Fund-Crypto-assets” license is only required for each Luxembourg AIFM that intends to manage an AIF investing in crypto-assets beyond 10% of its NAV. For the avoidance of doubt, the CSSF’s license requirements in the case of AIFs investing in target funds with underlying crypto-assets remain unchanged, meaning that an AIFM does not need to be licensed to manage crypto-assets in case its AIFs only indirectly invest in crypto-assets through one or more target funds. However, if an AIF invests more than 20% of its NAV in such target funds, the AIFM needs to be licensed for the “fund of funds” strategy in such a case.

For further information on the regulatory regime applicable to investments in crypto-assets by UCITS and AIFs, please do not hesitate to reach out to your usual Elvinger Hoss contact.