Tokenization & crypto licensing in Luxembourg

• Commission de Surveillance du Secteur Financier (CSSF) — Competent authority under MiCA; authorises and supervises crypto-asset service providers (CASPs)
• Administration des contributions directes (ACD) — Tax authority; receives DAC8/CARF crypto reports

Per the ACD circular L.I.R. n° 14/5 – 99/3 – 99bis/3 (26 Jul 2018), a private individual's gain from selling or exchanging crypto (incl. crypto-to-crypto and paying with crypto) is a speculative gain (Art. 99bis L.I.R.) if held six months or less, taxed at progressive income tax rates. Speculative gains are not taxable if total gains in the calendar year are below EUR 500. Gains on crypto held longer than six months as private assets are tax-free. Frequent trading, borrowed funds or a dedicated organisation can make it a taxable commercial activity; non-commercial mining can be miscellaneous income (Art. 99 no. 3).

Gains: Progressive income tax rates on gains within 6 months (exempt if annual total below EUR 500); 0% after 6 months for private assets

Tax authority: impotsdirects.public.lu ↗

• Keep consistent records of purchase dates and costs; the taxpayer must prove the holding period. If coins cannot be identified, the weighted average cost is used (FIFO/LIFO not allowed).
• Since 1 July 2026, check that a provider is an authorised CASP in the CSSF or ESMA register.
• The CSSF warns that non-EU providers wrongly relying on reverse solicitation may be stopped, which can mean short-notice account closures.