Blockchain Framework Bill Approved By Luxembourg Lawmakers

Blockchain, News, Regulation | February 15, 2019 By:

Luxembourg lawmakers have approved a regulatory framework to grant transactions done with blockchain technology the same legal status as traditional ones.

The framework, bill 7363, was sent to the legislative last year by Finance Minister Pierre Gramegna. The lawmakers have now passed the bill into law with 58 yes and 2 no from two members of the left-wing party déi Lénk. The objective of the bill 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 said. “The bill should provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries.”

Finance Minister Pierre Gramegna has been pushing for greater clarity in Luxembourg’s laws and regulations related to blockchain technologies. In September 2018, he said that this clarity will reassure investors and entrepreneurs who want to build on blockchain technology but have hesitated because the laws surrounding this space aren’t clear.

“The goal is to make sure that, if you do transactions using blockchain, they have legal certainty and the same legal strength as if you had done the same transaction without using blockchain, in a traditional manner,” Gramegna said at the time.