Luxembourg Lawmakers Passes Blockchain Framework Bill

2976 Total Views

As per official announcement published by Luxembourg parliament, the Chamber of Deputies, the lawmakers have passed a bill 7363 into law, facilitating the use of blockchain technology in financial.

The new law provides financial market participants with more transparency and legal certainty regarding the circulation of securities with blockchain. The bill is further geared to make the transfer of securities more efficient by decreasing the number of intermediaries.

As per the Luxembourg Time, the bill grants transactions done with blockchain the same legal status and protection as those done by traditional methods. Out of 60 parliamentarians, only two members of the left-wing party déi Lénk voted against the bill.

Luxembourg is perceived for its proactive approach to blockchain. In Nov. 2018, University of Luxembourg collaborated with a trading platform VNX Exchange in a bid to enhance the security of digital assets. Within the partnership, the University of Luxembourg helps VNX develop higher levels of network security for digital assets.

Last year in March, Luxembourg issued a warning against investments in digital currencies and initial coin offerings (ICOs). The regulator noted in the warning that digital currencies are not backed by any central bank, and cautioned against the volatility of cryptocurrencies, emphasizing that deals are often not fully transparent and business models are unclear.

In the meantime, a study carried by research company Ipsos on behalf of Dutch ING Bank B.V. in June reported that the lowest rate of people owning digital currency 4% rate is in Luxembourg.