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.
| Status | Legal |
| Risk Score | 22/100 (Low Risk) |
| Region | europe |
| Currency | EUR |
| Adoption Rank | #29 |
| Capital Gains (Personal) | 0% if held >6 months; up to 42% marginal rate for short-term |
| 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.
| Required | Yes |
| Regulator | CSSF |
| Framework | Markets in Crypto-Assets Regulation (MiCAR) and Luxembourg MiCA Implementation Law |
| Ease | medium |
| Cost (USD) | $55,000 - $165,000 |
Licensing is governed under MiCAR with CSSF supervision. Entities must comply with EU and Luxembourg-specific requirements.
CSSF has issued warnings about unauthorized crypto service providers and enforced AML compliance among registered VASPs.
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities fall under the scope of MiCAR and are regulated by the CSSF in line with EU guidelines.
Status: regulated
Stablecoins are regulated under MiCAR and Luxembourg's implementation law, ensuring compliance with EU standards.
Status: Unclear
MiCA excludes unique NFTs. CSSF follows ESMA guidance. No additional Luxembourg-specific NFT rules.
| Legal | Yes |
| Electricity Cost | $0.16/kWh |
| Renewable Energy | 30% |
| Infrastructure | good |
Mining is legal with moderate electricity costs and a good infrastructure environment.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 80/100 |
| Banking Access | open |
Risk Factors
Luxembourg is politically stable with a strong regulatory environment and open banking sector, favorable for crypto businesses.
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Explore IT Services →Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map
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