The CSSF will not extend the Luxembourg-approved prospectus that allows Israeli government bonds to be offered in five EU countries. The authorisation expires on 31 August, although another European regulator could still approve a future prospectus.
Binance is pulling back from the European Union after failing to win a licence under the bloc's MiCA regime, while Coinbase has secured its EU-wide passport from Luxembourg's CSSF — a split-screen moment as the transition period ends.
A draft European Commission report wants to let cross-border banks shift capital and liquidity across the EU to compete with US rivals. For a financial centre built on 117 foreign-owned banks, the reform is both an opportunity and a risk.
The European Commission has published its long-awaited review of the EU's Money Market Funds Regulation, alongside new guidance recommending, for the first time, liquidity benchmarks above the legal minimums. The FAQs point to weekly liquid asset levels of 40% for stable-NAV funds and 20% for variable-NAV funds. Luxembourg's CSSF flagged the move to the local fund industry on 15 May 2026.
EU finance ministers clashed on 5 May 2026 over a plan to turn the Paris-based ESMA into a frontline supervisor of clearing houses, depositories, trading venues and crypto firms. Luxembourg, the bloc's largest fund domicile with assets above EUR 7 trillion, joined Austria, Belgium, Denmark and others in rejecting full centralisation. A leaked paper from six big states has since intensified fears that funds could drift toward Paris.
The CSSF has set a tougher 2026 supervisory agenda for Luxembourg's investment funds, signalling closer scrutiny of governance, liquidity, asset valuation, costs and fees, cyber resilience under DORA, sustainable-finance claims and anti-money-laundering controls. Published on 31 March 2026 and covered by the Luxembourg press in late May, the priorities respond to market volatility and geopolitical strain.
Luxembourg's financial regulator found weaknesses in 73% of the 84 management companies it reviewed for AML controls in fund distribution, signalling tougher inspections ahead of the 2026 SREP cycle.
Luxembourg’s Government in Council approved a bill modifying laws on market abuse, benchmarks, securities prospectuses and EU financial-services implementation to align national law with Regulations (EU) 2024/2809 and 2025/914.
On 28 April 2026, State Street confirmed Luxembourg as the initial delivery location for tokenised fund servicing through its Digital Asset Platform — a vote of confidence in the country's digital-fund legal framework.
Coinbase has been authorised under MiCA by the CSSF and is using Luxembourg as its regional crypto hub, joining more than 30 non-EU firms that established a presence ahead of the 1 July 2026 transition deadline.
Total assets in Luxembourg-domiciled funds reached €6,436 billion at end-February 2026 — and on 4 February the regulator quietly opened the door to controlled crypto exposure for UCITS.
Investigators from the Grand Duchy raided the Luxembourg subsidiary of the Swiss private bank EFG on 24 February 2026, focusing on suspected client-vigilance and AML control failures.