Luxembourg lawmakers pass blockchain bill into law

Luxembourg lawmakers have passed a bill that will encourage the use of blockchain technology in the country’s financial services, CoinTelegraph reported.

According to the official announcement dated February 14, the bill 7363 was passed with 58 'yes' and 2 'no' from two members of the left-wing party déi Lénk.

The bill aims 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.” (Via online translation)

Local news outlet Luxembourg Times reported that the bill grants transactions conducted using blockchain technology the same legal status as done through traditional methods.

Commenting on the blockchain bill, finance minister Pierre Gramegna told Luxembourg Times last September, ''the goal is to make sure that, if you do transactions using blockchain, you have legal certainty and the same legal strength as if you had done the same transaction without using blockchain, in a traditional manner."

In March 2018, the country’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF) issued a warning against investments in cryptocurrencies and Initial Coin Offerings (ICOs), saying that these are “highly volatile and speculative investments, bearing a number of risks including total loss of investment.”