---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "europe", "fatf", "legal"]
aliases: ["LU", "LUX", "Luxembourg / Luxemburg / Lëtzebuerg"]
created: 2026-06-01
updated: 2026-01-10
compile_into: ["[[country--luxembourg]]"]
sources:
  - name: "CSSF"
    url: "https://www.cssf.lu"
    type: "official"
  - name: "EU [[concept--mica|MiCA]] Regulation"
    url: "https://eur-lex.europa.eu"
    type: "official"
---

# 🇱🇺 [[country--luxembourg|Luxembourg]] (LU) — Crypto Regulation

> Luxembourg has a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed under the Markets in Crypto-Assets Regulation (MiCAR) and its Luxembourg implementation law. The CSSF actively supervises crypto activities and issues guidelines consistent with EU standards.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--europe|europe]] |
| Currency | [[entity--eur|EUR]] |
| Adoption Rank | #29 |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 0% if held >6 months (non-speculative); speculative gains (held <6 months) taxed at progressive rates up to 45.78% (including 7-9% solidarity surcharge); annual gains <€500 exempt |
| Capital Gains (Corporate) | 24.94% combined rate (Luxembourg City) |
| VAT on Crypto | No |

VAT applies to crypto transactions in Luxembourg. Specific tax rates for capital gains, staking, mining, and airdrops are not explicitly stated in the provided text.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--cssf|CSSF]] |
| Framework | Markets in Crypto-Assets Regulation (MiCAR / EU Regulation 2023/1114) and Luxembourg Law of 6 February 2025 designating CSSF as competent authority |
| Ease | medium |
| Cost | $55,000 - $165,000 |
| Timeline | 6-14 months |

Licensing is governed under MiCAR with CSSF supervision. Entities must comply with EU and Luxembourg-specific requirements.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | Yes |
| FATF Status | regular monitoring (not grey-listed) |

## DeFi

**Status:** regulated

DeFi activities fall under the scope of MiCAR and are regulated by the CSSF in line with EU guidelines.

## Stablecoins

**Status:** regulated

Stablecoins are regulated under MiCAR and Luxembourg's implementation law, ensuring compliance with EU standards.

## NFTs

**Status:** Unclear

MiCA excludes unique NFTs. CSSF follows ESMA guidance. No additional Luxembourg-specific NFT rules.

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.16/kWh |
| Renewable Energy | 30% |
| Climate | temperate |
| Infrastructure | good |

Mining is legal with moderate electricity costs and a good infrastructure environment.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 80/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |

## Enforcement

CSSF has issued warnings about unauthorized crypto service providers and enforced AML compliance among registered VASPs.

## CBDC Status: exploring

## FAQ

### Is cryptocurrency legal in Luxembourg?

Luxembourg has a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed under the Markets in Crypto-Assets Regulation (MiCAR) and its Luxembourg implementation law. The CSSF actively supervises crypto activities and issues guidelines consistent with EU standards.

### What is the FATF status of Luxembourg?

Luxembourg is classified by FATF as: regular monitoring (not grey-listed).

### Are VASPs licensed in Luxembourg?

Yes, licensing is required for VASPs.

### What is the AML/KYC regime in Luxembourg?

KYC is mandatory for crypto businesses. Travel rule threshold: EUR 1000.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.*

**Sources:**
- [CSSF](https://www.cssf.lu)
- [EU MiCA Regulation](https://eur-lex.europa.eu)