Feb 15, 2019 10:30 UTC
Feb 15, 2019 at 10:30 UTC
Luxembourg’s Parliament Passes Bill 7363
Luxembourg’s parliament, the Chamber of Deputies, released an official announcement on February 14, 2019, stating that the lawmakers in the country have successfully passed the bill 7363 into law.
The law will facilitate the deployment of Blockchain Technology in financial services.
The announcement reads,
“The objective of Bill 7363 is to provide financial market participants with legal certainty for the circulation of securities via blockchain technology. 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 was passed with 58 yes and 2 no (dei Lénk).”
The new law will not only provide the participants in the financial market with legal certainty and more transparency. It is also slated to support the elimination of third parties to make the trading of securities more efficient.
Local media outlet, the Luxembourg Time, reports that after the passing of the bill into law, the transactions conducted on Blockchain will now be granted the same legal status as that granted to trades carried out through traditional mediums. Hence, investors will have legal protection.
The bill was passed with the consent of as much as 58 parliamentarians out of the total 60. Two members of the left-wing dei Lenk party voted a no to the bill.
Despite its strict stance against cryptocurrencies previously, the European nation of Luxembourg is welcoming the emerging technology of Blockchain with open arms.
Last year in March, the country’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), had issued a cautionary message against ICO and digital currency-based investments.
CSSF had warned potential investors that digital assets are inherently volatile in nature and that they are not backed by any central bank. The regulator also highlighted in the warning how trades in crypto are often opaque and the business models often incomprehensible.
The University of Luxembourg and the crypto exchange called VNX joined hands in November last year with an aim to enhance the security of cryptocurrencies. The Luxembourg University assists the crypto exchange in the development of higher network security for cryptocurrencies.