FAQ CSSF – Questions/Réponses relatives aux prestataires de Services d’Actifs Virtuels (uniquement en anglais)

On 17 August 2023, the CSSF published a new FAQ on VASPs. This document covers to VASPs already registered with the CSSF under the AML/CTF Law or those intending to provide services in Luxembourg. It does explicitly not consider the European-level framework changes, such as MICA.
In the following, we would like to present all original questions, together with a short summary of their corresponding answers:
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Question 1: What is a virtual asset?
Answer: A virtual asset is a digital representation of value that can be digitally traded or transferred and used for payment or investment purposes, excluding certain types of virtual assets.
Question 2: Who must register with the CSSF as a VASP?
Answer: Entities that provide virtual asset services in Luxembourg must register with the CSSF as a Virtual Asset Service Provider (VASP).
Question 3: When must a non-Luxembourg established entity, which provides VA services in Luxembourg, be registered as VASP?
Answer: Non-Luxembourg entities that provide virtual asset services in Luxembourg must be registered as a VASP.
Question 4: When should the registration as a VASP take place?
Answer: The registration as a VASP should take place before providing virtual asset services in Luxembourg.
Question 5: Can a VASP registered with the CSSF passport its services to other European Member States?
Answer: Yes, a VASP registered with the CSSF can passport its services to other European Member States.
Question 6: How to proceed with the registration as a VASP?
Answer: The process for registration as a VASP involves submitting the necessary documentation and fulfilling the requirements set by the CSSF.
Question 7: When will a VASP appear in the CSSF register?
Answer: A VASP will appear in the CSSF register once the registration process is completed and approved.
Question 8: What are the main legal texts applicable to VASPs?
Answer: The main legal texts applicable to VASPs include the AML/CTF Law and CSSF regulations.
Question 9: Must providers which solely offer the technology to support VA services register as VASP?
Answer: Providers that solely offer technology to support virtual asset services may need to register as a VASP, depending on the specific circumstances.
Question 10: Can a credit institution established in Luxembourg offer VA services?
Answer: Yes, a credit institution established in Luxembourg can offer virtual asset services, but it must register as a VASP with the CSSF.
Question 11: What is the regime applicable to undertakings for collective investment?
Answer: AIFMs managing AIFs investing in virtual assets must fulfill certain conditions. Additional analysis is required based on the activities listed in the AML/CTF Law.
Question 12: What is expected as regards the understanding of ML/TF risks to which VASPs are exposed to?
Answer: VASPs must identify and understand the money laundering and terrorist financing risks associated with the virtual asset ecosystem and their business model.
Question 13: What level of information is expected for the ML/TF risk assessment to be submitted as part of the registration file for a VASP?
Answer: The ML/TF risk assessment submitted as part of the registration file for a VASP should consider various risk factors, such as customers, countries, products, services, transactions, and delivery channels.
Question 14: What is expected in terms of AML/CTF policies and procedures?
Answer: VASPs must have AML/CTF policies and procedures that comply with the obligations set by the Luxembourg AML/CTF legal framework.
Question 15: What is expected in terms of monitoring of the transactions?
Answer: VASPs should have a process for monitoring transactions, preferably supported by automated tools, to mitigate money laundering and terrorist financing risks.
Question 16: What is expected for the reporting of suspicious activities or transactions to the Financial Intelligence Unit?
Answer: VASPs must promptly report any suspicious activities or transactions to the Luxembourg Financial Intelligence Unit.
Question 17: What is the applicable legal framework related to international financial sanctions and what are the obligations of VASPs?
Answer: VASPs must comply with the applicable legal framework related to international financial sanctions and fulfill their obligations in this regard.
Question 18: Is a registered VASP subject to any supervisory fees?
Answer: Yes, a registered VASP may be subject to supervisory fees.
Question 19: What is the role of the CSSF as regards VASPs?
Answer: The CSSF plays a supervisory role in relation to VASPs and their compliance with AML/CTF obligations.
Question 20: What are the powers of the CSSF in the context of its supervision related to VASP?
Answer: The CSSF has powers to supervise VASPs, including conducting inspections, requesting information, and imposing sanctions for non-compliance.