Crypto License Luxembourg
Obtain your crypto license in Luxembourg. CASP authorization under MiCA regulation. Expert guidance through the CSSF licensing process.
In summary: Luxembourg offers a robust regulatory framework for crypto-assets under MiCA. CASP licenses are issued by the CSSF with minimum capital of €50,000-€150,000 depending on services. Full MiCA compliance required since December 2024.
Crypto-Asset Regulation in Luxembourg
Luxembourg has established itself as a leading European hub for crypto-asset businesses. With the full application of MiCA since December 2024, the country offers a clear regulatory pathway for crypto-asset service providers.
MiCA Framework Overview
The Markets in Crypto-Assets (MiCA) regulation creates a harmonized EU framework for:
- Crypto-Asset Service Providers (CASPs)
- Issuers of crypto-assets
- Stablecoin issuers (ARTs and EMTs)
Services Requiring CASP Authorization
| Service | Minimum Capital |
|---|---|
| Custody and administration | €125,000 |
| Trading platform operation | €150,000 |
| Exchange services | €125,000 |
| Order execution | €125,000 |
| Placement services | €50,000 |
| Reception/transmission of orders | €50,000 |
| Advisory services | €50,000 |
| Portfolio management | €125,000 |
| Transfer services | €125,000 |
CASP Licensing Process
Step 1: Pre-Application
- Initial meeting with CSSF
- Business model assessment
- Gap analysis for compliance
- Capital planning
Step 2: Documentation
- Program of operations
- Organizational structure and governance
- IT and cybersecurity policies
- AML/CFT procedures
- Business continuity plan
- Complaints handling procedures
- Proof of capital
Step 3: Application Review
- CSSF review (up to 40 working days for complete applications)
- Fit and proper assessment of directors
- On-site inspection if required
- Authorization decision
Key Requirements
Governance
- At least 2 directors (4-eyes principle)
- Directors with relevant experience
- Compliance officer and MLRO
- Clear organizational structure
AML/CFT Compliance
- Customer due diligence procedures
- Transaction monitoring
- Suspicious activity reporting
- Travel Rule compliance
Prudential Requirements
- Minimum capital requirements
- Professional indemnity insurance
- Asset segregation requirements
- Regular reporting to CSSF
Why Luxembourg for Crypto?
- First-mover advantage: Early adoption of crypto regulation
- EU passport: Access to all EU markets with single license
- CSSF expertise: Experienced regulator in financial services
- Talent pool: Strong financial services ecosystem
- Tax clarity: Clear taxation of crypto-assets
- Infrastructure: World-class financial infrastructure
Our Services
- Pre-application strategy and planning
- CASP license application preparation
- Policy and procedure development
- Regulatory liaison with CSSF
- Ongoing compliance support
- VASP to CASP transition assistance
Frequently Asked Questions
MiCA (Markets in Crypto-Assets) is the European regulation that harmonizes the regulatory framework for crypto-assets across the EU. It entered into full application on December 30, 2024, and requires CASP (Crypto-Asset Service Providers) to obtain authorization.
VASP (Virtual Asset Service Provider) registration was the pre-MiCA regime in Luxembourg supervised by the CSSF. Since December 2024, VASPs must transition to the MiCA CASP license to continue operating.
Services requiring a license include: custody of crypto-assets, crypto exchange platforms, order execution, placement, advisory services, portfolio management, and transfer services for crypto-assets.
Minimum capital requirements depend on the services: €50,000 for advisory/placement, €125,000 for custody/exchange/execution, €150,000 for trading platforms. Additional prudential requirements apply.
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