On 22 January 2025, the Luxembourg Parliament adopted a law implementing, inter alia, MiCA1 into national law (the "Law").
Among other things, the Law confirms and extends the CSSF's role, in accordance with MiCA. Some of the key aspects of the new Law are the formal implementation of the CSSF's supervisory powers and competences, and the introduction into national law of clear enforcement mechanisms including penalties for violations, ensuring an effective regulatory environment.
In addition to MiCA-related provisions, the Law also modifies the Law of 20042 to align the Luxembourg national legal framework with MiCA provisions. Indeed, the new Law has officially repealed the VASP3 registration requirement. Consequently, persons that are not registered as VASPs, will have to directly seek authorisation in accordance with MiCA to provide crypto-asset-related services in Luxembourg.
It should also be reminded that crypto-asset providers registered as VASPs prior to the entry into force of MiCA can continue to operate during the 18-month grandfathering period until 1 July 2026. After this period, authorisation in accordance with MiCA will become mandatory to offer crypto-asset-related services in Luxembourg.
Footnotes
1 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets.
2 Law of 12 November 2004 on the fight against money laundering and terrorist financing.
3 Virtual asset service provider in accordance with the Law of 2004
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
