LUXEMBOURG Law and Practice Contributed by: Andreas Heinzmann, Valerio Scollo and Angela Permunian, GSK Stockmann
de Luxembourg and an MTF named Euro MTF. At pre - sent, there are no OTFs based in Luxembourg. In addition, MiCA introduced a specific legal frame - work applicable to CASPs, including crypto-asset trading platforms, requiring these service providers to be authorised by the competent authority. Recently, Bitstamp, the cryptocurrency exchange headquar - tered in Luxembourg, became the first provider in Luxembourg to obtain a CASP licence from the CSSF. 6.2 Regulation of Different Asset Classes In general, the regulatory regime relating to trading is the same for all asset classes. However, specific rules on transparency and trading are slightly different for equity and debt instruments. In addition, specific rules apply with regard to crypto-assets (see 10.5 Regula- tion of Blockchain Asset Trading Platforms ). 6.3 Impact of the Emergence of Cryptocurrency Exchanges The emergence of cryptocurrency exchanges and the significance of the crypto sector has led to the adop - tion of, and proposals for, new regulations. Following the adoption of the sixth AML directive, CASPs are required to comply with AML legislation by ensuring the full traceability of transactions and authentication of users (see 1.1 Evolution of the Fintech Market ). Further, MiCA introduced a prudential regime relating to cryptocurrency exchanges. The emergence of cryptocurrency exchanges and the growth of the sector around crypto-assets also prompted Luxembourg to adopt the Blockchain IV Law in December 2024. Additional regulatory changes at European level are expected with respect to decentralised exchanges (see 10.9 Decentralised Finance (DeFi) ). 6.4 Listing Standards Listing standards vary depending on the relevant trading venue and the type of financial instrument. In accordance with the Law of 30 May 2018 on markets in financial instruments, as amended, regulated mar - kets shall have clear and transparent rules regarding the admission to trading of financial instruments. For
listing on the Luxembourg Stock Exchange’s regulated market, issuers must publish a prospectus prepared in accordance with Regulation (EU) 2017/1129 on prospectuses (the “Prospectus Regulation”) that has been reviewed and approved by the CSSF. Alterna - tively, the prospectus may be approved by a compe - tent authority of another EU member state and pass - ported to Luxembourg. For listing on the Euro MTF in Luxembourg, the prospectus must be approved by the Luxembourg Stock Exchange. Furthermore, on 8 October 2024, the EU adopted a package of legal acts (the “Listing Act”), which eases issuer obligations by expanding prospectus exemp - tions and introducing the EU Follow-on Prospectus and the EU Growth Issuance Prospectus, effective from 5 March 2026. Following the listing and admission to trading on either trading venue, issuers must regularly disclose regulated information concerning their business and the listed security. 6.5 Order Handling Rules In accordance with the MiFID II/MiFIR framework, the Financial Sector Law requires that investment firms and credit institutions that are authorised to execute orders on behalf of their clients implement procedures and arrangements which provide for the prompt, fair and expeditious execution of client orders, relative to other client orders or their own trading interests. Oth - erwise, comparable client orders must be executed in accordance with the time of their reception. 6.6 Rise of Peer-to-Peer Trading Platforms There are currently no peer-to-peer trading platforms located in Luxembourg. The regulator has not yet pro - vided specific guidance on the regulatory environment applicable to them; whether or not specific rules on, for instance, AML and loan origination apply should be checked on a case-by-case basis. 6.7 Rules of Payment for Order Flow The MiFID II legal framework, as transposed into Lux - embourg law, in principle prohibits the possibility of routing client orders to a particular trading venue or execution venue to receive any remuneration, dis - count or non-monetary benefit. In practice, and as
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