Bright future for tokenised assets in Luxembourg

There was positive news on the outlook for tokenised fund shares at ALFI Global Asset Management conference, from Luxembourg’s financial regulator.

Laurent van Burik, head of unit investment funds at the Commission de Surveillance du Secteur Financier (CSSF), told attendees at the conference that further guidance from the regulator on digital assets was “in the pipeline” and to expect a broader discussion on eligibility in the usage space.

He also noted that the regulator has clarified a number of ‘FAQs’ from investors around using e-money tokens under MiCA, which is possible provided the tokens are then converted into cash in a reasonable time.

“This mechanism will allow for users to accept subscriptions and then to process redemptions. That's positive news in view of further tokenisation of fund shares going forward,” he said.

“We have also verified the possibility for users to invest into crypto assets, you will have seen there's now a 10% threshold for indirect investments into transfer, return securities with exposure.”