Many exchange platforms promote virtual assets investments to consumers through various digital communication channels. While such investments may provide high returns, they are also associated with high risks and are not suitable for all types of investors. The CSSF warns consumers interested in investing in virtual assets to read the warning on virtual assets and/or initial coin offerings (ICOs) and tokens, as well as the European Supervisory Authorities’ (EBA, ESMA and EIOPA) consumer warning.

Despite the risks associated with virtual asset investments, the demand for such investments is increasing. The legislator has recognised the need to regulate some of the risks associated with virtual asset investments, including the AML/CTF risk, by developing new legislation, such as the Markets in Crypto-assets Regulation (MiCA).

To assist consumers who are willing to invest in virtual assets, the present guidance outlines some minimum steps to perform before investing. However, the guidance does not constitute an investment recommendation or investor protection measure. Consumers should educate themselves about virtual assets, which lack a detailed legal framework and consumer protection regime, before making any investment decisions.