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Luxembourg Approves Blockchain Framework Bill Into Law

Luxembourg | Bill | Law | Blockchain

A new bill 7363 has been passed in law by the Luxembourg lawmakers, which will facilitate the use of blockchain technology in financial services, as per the official announcement published by the Chamber of Deputies, country’s parliament on Feb. 14.

Aimed at providing the participants of the financial market with a better circulation of securities in terms of transparency and legality, by employing blockchain technology. In addition, by reducing the number of intermediaries involved, the bill will ensure a more efficient transfer of securities.

According to Luxembourg Time, a local news outlet, the bill will grant transactions done with blockchain technology the same legal status and protection as traditional ones. Reportedly, out of 60 parliamentarians only two members of the left-wing party déi Lénk voted against the bill.

Known for its positive approach to blockchain technology, Luxembourg has actively made efforts to involve blockchain at various levels. In November 2018, the University of Luxembourg collaborated with Luxembourg-based trading platform VNX Exchange to improve the security of digital assets. Luxembourg University will purportedly help VNX to develop higher levels of network security for digital assets.

No love for crypto

It seems that Luxembourg has ample love for blockchain, but not much love for cryptocurrencies. In March last year, the Luxembourg Financial Regulator CSSF issued a warning against cryptocurrency and initial coin offerings (ICOs) investments.

The warning noted that cryptocurrencies are not backed by any central bank and pointed towards the volatility of virtual currencies. Moreover, In June, a study conducted by research company Ipsos for Dutch ING Bank B.V. states that the lowest rate of people owning cryptocurrency, 4 percent, the rate is in Luxembourg.

Read more: Malta AI & Blockchain Summit handing out 100 free booths to startups

 

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