Luxembourg, a small, wealthy country in Europe, has passed a new bill into law. It facilitates the use of blockchain technology in financial services. The regulation was passed by the country’s government on February 14th.
In November 2018, the University of Luxembourg partnered with a crypto exchange to improve the security of digital assets.
New bill
The new law will provide more transparency and legal clarity in the blockchain industry. It is supposed to help financial market participants. According to a local media outlet, the regulation will also make the transfer of securities more efficient by reducing the number of intermediaries.
Luxembourg passes Blockchain framework bill- https://t.co/cz2srAPXjX pic.twitter.com/yui31QpXsz
— Luxembourg Times (@LuxTimes) 15 lutego 2019
The bill grants transactions done with blockchain technology the same legal status and protection as those done through traditional means.
Proactive approach
Luxembourg has been enthusiastic if it comes to blockchain technology. Of course, there was the University of Luxembourg case. But there have been many other blockchain goings-on in this small country.
In March, the Luxembourg Financial Regulator CSSF published a warning against investments in cryptocurrency and Initial Coin Offering (ICO). The CSSF explained that any central bank doesn’t back up digital currencies.
So, the European country has much to do to develop its blockchain and cryptocurrency industry. According to the research from Ipsos, only 4 percent of people in Luxembourg own cryptocurrencies. It is the lowest rate in Europe.
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