Even though the price of bitcoin has seen a decrease recently, having hit an all-time high of €56,574.977 on 11 November, crypto-currencies and other virtual assets, including NFTs, continue to shake up the world and the certainties of even the most conservative bankers.

On 29 November the Commission de surveillance du secteur financier (CSSF) , in which the financial market watchdog opens the door to virtual assets. While it rejects Ucits aimed at non-professional clients and pension funds, it welcomes alternative investment funds, under certain conditions.

The criteria include the procurement of an extension of authorisation before beginning to invest in virtual assets. To do so, managers must provide a case-by-case impact study based on the risk profile of the fund, provide clear, transparent and updated information to investors, and complete a file where a whole series of information must be specified, such as:

- a description of the project and of the different service providers and delegates involved

- information on whether or not investments in virtual assets will be made directly or indirectly (e.g. through derivatives);

- an updated risk management policy, including in particular how the risks incurred in relation to virtual assets are managed

- an updated valuation policy, including rules on how the value of virtual assets will be determined

- a description of the experience of the portfolio manager (and other entities involved in the investment management process) in virtual assets

- a description of how the custody of the assets will be organised by the custodian

- information on the target investors, as well as any information on distribution channels of the AIF

- AML/CTF analysis of the asset MFI.

This document is a follow-up to .

This story was first published in French on . It has been translated and edited for Delano.