New Updates Regarding The Use Of Blockchain Technology In Luxembourg.Scroll Down
An official announcement was published on February 14th by the Chamber of Deputies which states that Bill 7363 was passed by lawmakers in Luxembourg to facilitate the use of blockchain technology in the financial sector. This new law will provide participants with more legal certainty and transparency in the financial market regarding how securities are circulated with blockchain technology. The bill will also reduce the number of intermediaries by improving the efficiency of security transfers.Luxembourg Time, a local news outlet, says that this new bill will grant any transaction done with blockchain technology the same protection and legal status as transactions that are done through more traditional methods. Only 2 members who are part of déi Lénk, a left-wing party, voted against this bill. The other 58 parliamentarians voted in favor of it. Luxembourg takes proactive approaches to blockchain technology. In fact, back in November of 2018, the University of Luxembourg teamed up with VNX Exchange, a trading platform, in a joint bid to improve security with regard to digital assets. Through this collaborative effort, the University of Luxembourg assists VNX with developing increased levels of network security for digital assets. In March of 2018, the CSSF, Luxembourg’s Financial Regulator, warned against investing in initial coin offerings (ICOs) and cryptocurrencies. The regulator mentions in the warning that central banks do not back cryptocurrency and also warns against volatile currencies because business models are often difficult to understand and not always transparent. A study conducted in June of 2018 by Ipsos, a research company on behalf of Dutch ING Bank, indicates that only 4% of people own cryptocurrency in Luxembourg. This low rate is a clear sign that people are heeding these warnings by steering clear of owning crypto altogether. It is possible that people will feel more confident about owning cryptocurrency once network security for digital assets has been improved upon.