On Feb. 17, 2025, LUX CSSF advised that the law had been published, and confirmed that the publication made it the officially designated competent authority for MiCA.
LUX CSSF said it has supervisory/investigative powers, plus penalties regime in place.
On May 21, LUX PRL issued bill relating to crypto-assets, green bonds.
LUX PRL issued bill 8387 implementing EU regulations, amending national framework.
Follows EU CNCL, EP Jun. 2022 agreement on crypto asset transfer, see #142019.
Follows EU CNCL Feb. 2023 confirm agreement with EP on green bonds, see #164644.
Main Points
The main purpose of the bill is to implement European regulations re the regulation of crypto-assets, European long-term investment funds and European green bonds.
EU Reg 2023/606 on requirements for the investment policies and operating conditions of European long-term investment funds and the definition of assets eligible for investment, obligations on portfolio composition and diversification and borrowing of cash and other provisions of the statutes of the European Long-Term investment funds.
Implementation of EU Reg 2023/1114 on markets in crypto-assets, and EU Reg 2023/ 1113 on information accompanying transfers of funds and certain crypto-assets.
Implementation of EU Reg 2023/2631 on European Green Bonds and the optional disclosure of information for bonds marketed as environmentally sustainable bonds.
Modification of the amended Law of Apr. 5, 1993 on the financial sector; of the amended Law of Dec. 23, 1998 on setting up supervision for the financial sector.
And of the amended Law of Nov. 12, 2004 on AML/CFT; of the amended Law of Nov. 10, 2009 on payment services; of the amended Law of Dec. 7, 2015 on insurances.
And of the amended Law of Jul. 16, 2019 on the regulations re financial services.
Crypto-Assets Service Providers (CASPs) will be subject to a harmonized authorization regime including prudential and organizational requirements, and supervisory regime.
The legal framework will also cover the prevention of market abuse on crypto-assets.
LUX CSSF will ensure the application of the regulations on crypto-assets; it will have the supervisory and investigative powers for the exercise of tasks and enforcement.
Alignment of AML/CFT provisions with the new terminology resulting from MiCA.
Replacement of references to virtual assets and virtual asset service providers (VASPs) with references to crypto-assets and CASPs; bill repeals the national VASPs regime.
The bill repeals from Dec. 30, 2024, VASPs' registration provisions of the AML Law.
Despite the repeal, VASPs already registered in LUX CSSF's register on Dec. 30, 2024 remain registered until Jul. 1, 2026 or until they are granted/refused authorization.
The transitional period applied at national level stems from art 143 of Reg 2023/1114.
VASPs remain subject to the professional obligations set out in AML Law during this transitional phase and are treated as crypto-asset service providers re Reg 2023/1113.
LUX CSSF also remains the supervisory authority for already registered VASPs, which will be given the necessary time to obtain their authorization under the CASP status.
LUX CSSF will have the supervisory and investigative powers re its green bonds' tasks.
Effectiveness
The law will enter into force on Dec. 30, 2024; article 2 will enter into force on Jun. 30, 2024 and article 4 will enter into force on Dec. 21, 2024.
Jul. 2024 Update
On Jul. 9, 2024, LUX PRL said the bill was presented before the Finance Committee.
Questioned by the deputies, the Minister of Finance Gilles Roth and his teams stated that there were 13 players in Luxembourg who are dedicated to the activity of the bill.
They operate under the status of virtual asset service provider (VASP) and will have to acquire the status of crypto asset service provider (CASP) under the new legislation.
By complying with the standards supervised by LUX CSSF as the competent authority.
The Minister answered queries re the volatile nature of crypto assets and risk linked to the presence of organised crime which uses virtual currencies for illegal transactions.
He also answered queries about the green bond label and stressed that a transparency clause applied to the presence of nuclear/gas components in the bonds will be set up.
Nov. 2024 Amended Bill
On Nov. 15, 2024, LUX PRL announced that the Finance Committee had approved amendments to bill 8387 during their meeting, held on Nov. 15, 2024.
Amendments concern in particular the inspections that CSSF can carry out in the field.
Specifically, MEPs learned about the risks of money laundering in crypto-asset sector.
Feb. 2025 Law Published
On Feb. 10, 2025, LUX GVT published Law of Feb. 6, 2025, implementing EU rules.
It aligned national laws with the EU cryptos' framework; application on Jun. 30, 2025.
Feb, 17, 2025 LUX CSSF Announcement
On Feb. 17, 2025, LUX CSSF advised that the law had been published, and confirmed that the publication made it the officially designated competent authority for MiCA.
LUX CSSF said it has supervisory/investigative powers, plus penalties regime in place.
PR, 2/17/2025; OG A38, 2/10/2025; Law 2/6/2025; PR, Mt, 11/15/2024; PR, 7/9/2024; Bill 8387, PR, 5/21/2024; Law 4/5/1993; Law 12/23/1998; Law 11/12/2004; Law 11/10/2009; Law 12/7/2015; Law 7/16/2019; ELTIF Reg 2015/760, Reg 2023/606; MiCA Reg 2023/1114; TFR Reg 2023/1113; EUGBR Reg 2023/2631; ESG
