Launching a cryptocurrency in Luxembourg

In 2014, the authorities stated that: a) On the one hand, “virtual” currencies are considered as money, since they are accepted as a means of payment of goods and services by a sufficiently large group of people.

The issuing of virtual currencies is not regulated from a monetary point of view. The methods for its issuing and the definition of its relation with other monies may vary from one type of virtual currency to another. Virtual currencies are obviously not legal tender and they entail risks for their holders. These risks were subject to a public warning issued by the EBA and ESMA.

b) On the other hand, the CSSF reminds that nobody can be established in Luxembourg to carry out an activity of the financial sector without an authorisation by the Minister of Finance and without being subject to the prudential supervision of the CSSF (Article 14 of the law of 5 April 1993 on the financial sector). Therefore, the potential interested persons who would like to establish themselves in Luxembourg in order to carry out an activity of the financial sector (as, for instance, the issuing of means of payments in the form of virtual or other currencies, the provision of payment services using virtual or other currencies, the creation of a market (platform) to trade virtual or other currencies) shall define their business purpose and their activity in a sufficiently concrete and precise manner to allow the CSSF to determine for which status they need to receive the ministerial authorization.