Luxembourg Compliance Report

Regulatory Overview

Regulatory Status

Some rules exist but significant gaps; draft legislation or limited guidance

Key Regulator(s)

European Parliament and of the Council, Reporting Authority

Primary Legislation

AML Law, Law of 12 November 2004 on the fight against money laundering and terrorist fina, EUR-Lex MiCA Regulation, While the current AML Law itself doesn't explicitly mandate segregation of clien, MiCA Regulation (EU) 2023/1114, Article 67 (5) and Article 68 (specifically Arti, as amended, including by the Law of 25 March 2020 on virtual assets, Prospectus Regulation, Prospectus Regulation (EU) 2017/1129: https://eur-lex.europa.eu/eli/reg/2017/112, Directive 2014/65/EU, VASPs must register with the CSSF and comply with the Law of 12 November 2004 on, Luxembourg Law of 12 November 2004 (consolidated version, French): https://legil, Regulation (EU, amending the AML/CFT Law, Law of 25 March 2020 amending: 1° the amended law of 12 November 2004 on the fight against money laundering and terrorist financing; (..., Law of 1 March 2019 concerning the use of distributed ledger technology in the financial sector., amending the DLT Law and others, excluding those already classified as financial instruments, which are covered by existing EU securities law, as amended, particularly by the 2020 law

Travel Rule

Not adopted

Tax Reporting

For income tax purposes (individuals): Often treated as "miscellaneous income" or "commercial profit" depending on the activity.. For corporate tax purposes: Treated as assets on the balance sheet, with profits/losses impacting ordinary taxable income.. For VAT purposes: Often treated as means of payment or equivalent to currency.. Speculative Gains (Occasional Trading):. If an individual acquires and disposes of cryptocurrency within a period of less than six months, any profit realised is considered "miscellaneous income" (revenus divers) under Article 99 of the Income Tax Law (L.I.R.).

Key Facts

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