The Luxembourg Parliament amended a blockchain bill promoting the use of blockchain technology in financial services. The announcement was published by the Chamber of Deputies, on February 14.
The new law aims to provide financial market members with more transparency and legal assurance regarding the circulation of securities with blockchain technology.
The bill 7363 noted that –
“The transfer of securities via the blockchain does not yet have legal certainty; The bill should provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries.”
The bill provides blockchain securities the same legal status as traditionally issued securities. Furthermore, the bill conceptualizes blockchain-issued securities as tokens that perform as digital assets “legally bound by the same rights as classic dematerialized securities.”
With this transit, Luxembourg has joined the European Union (EU) countries with a regulatory framework for the blockchain ecosystem.
In June 2018, The Memorandum of Understanding (MoU) was signed between the Luxembourg House of Financial Technology (LHoFT) along with other two departments at the University of Luxembourg; the Interdisciplinary Centre for Security, Reliability and Trust, and the Faculty of Law, Economics and Finance.
The alliance was formed to help assist the sharing of blockchain solutions and ICO regulation research between the university departments.
According to a survey conducted by online statistics and business intelligence portal Statista, Luxembourg has a very low crypto penetration, as only 4 percent of Luxembourg’s residents own cryptocurrencies.
We can see that more countries are introducing regulations on blockchain framework since 2018, following the rise in a series of hacking incidents and cryptocurrency fraudulent activities.