Luxembourg Pass Blockchain Regulation Bill

Wilfred Michael 

Wilfred Michael

News reporter

15 February 2019,
10:46
Luxembourg Pass Blockchain Regulation Bill

Luxembourg lawmakers have continued their proactive stance toward the development of blockchain technology by passing a new bill that brings more certainty to companies in the new industry.

The country's parliament known as the Chamber of Deputies said in a February 14 announcement that it had passed bill 7363 into law.

What Luxembourg's Bill 7363 Means For The Crypto and Blockchain Space

The newly passed bill will govern the issuance of securities with blockchain technology, a process that had “no legal certainty” in Luxembourg before the announcement.

As per the Luxembourg Economic Times, the bill confers on blockchain-based transactions, the same rights prescribed by the country for a traditional transaction.

In simpler terms, one of the benefits would be that citizens who engage in a transaction of blockchain tokens have the backing of the government and could appeal to a local court if they encounter any challenges while carrying out these transactions.

The Parliament hopes that the new regulation will “provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries.”

Investors can exchange security tokens issued through blockchain technology in real-time, thus offering more liquidity to investors and serving as a global fundraising tool projects for startups.

Fifty-eight members of the parliament voted in favor of the bill with only two going against it.

Spain and Luxembourg on Opposite Angles About Crypto Regulation

Without a doubt, the decision of lawmakers in Luxembourg to give blockchain transactions the same right as traditional transactions is in stark contrast to what we reported from neighboring Spain earlier in the week.

Instead of creating a conducive regulatory environment for cryptocurrencies and blockchain technology, The Spanish Central Bank warned citizens to stay away from cryptocurrencies citing its high volatility and risk nature.

In the long run, Luxembourg will likely become a blockchain and crypto friendly territory while the same cannot be said for Spain at the moment.

 

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