CSSF Updates Crypto-Assets FAQ for UCIs – A major step forward for Luxembourg’s Fund Industry

CSSF Updates Crypto-Assets FAQ for UCIs – A major step forward for Luxembourg’s Fund Industry

The CSSF has recently updated its FAQ on crypto-assets for Undertakings for Collective Investment (UCIs), marking an important milestone as the regulatory framework aligns with MiCAR and provides clear, practical guidance on how Luxembourg funds can access crypto exposure.

Two key takeaways:

1️⃣ A pragmatic 10% threshold opens doors for mainstream adoption
UCITS and AIFs open to retail investors (other than well-informed investors) may now invest up to 10% of their NAV in crypto-assets, under the conditions outlined in the FAQ.

📊 The opportunity: With €5,400 billion in Luxembourg fund AuM (Nov 2025), if just 1 fund out of 10 allocates 3% to crypto, this could represent ~€16.2 billion in potential inflows.

2️⃣ Flexibility comes with responsibility

While prior authorization for the “Other-Other Fund-Crypto-assets” strategy is not required when crypto exposure remains below 10% of NAV, the CSSF clearly emphasizes the need for:

– Adequate internal control functions
– Robust risk management frameworks tailored to crypto-assets
– Proper governance and due diligence

This balanced approach is encouraging: it enables access while maintaining investor protection.

💡 6 Monks (6M) : A well-established business case for crypto strategies project

As the first and only AIFM authorized for the “Other-Other Fund-Crypto-assets” strategy, 6 Monks can manage AIFs investing in crypto-assets without any NAV threshold constraints within a highly regulated and expert-driven environment

This positions us as a trusted, regulatory-compliant partner for fund promoters seeking limited or unrestricted crypto exposure, within a Luxembourg AIFM framework.

If you’re considering launching or restructuring a fund with crypto exposure, let’s discuss how we can support your project.

📄 Full FAQ here