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Blockchain Law passed in Luxembourg
By Annie-Laure Mahieu, Project and Research Assistant @The LHoFT Foundation
WOO! But what is the Law about?
On 14thof February, the Luxembourg parliament passed Bill 7363 into Law on Blockchain and the circulation of tokens as dematerialized securities.
This addendum to the Law of 2001 on the circulation of securities was proposed by the Minister of Finance, Pierre Gramegna, at the end of September 2018 and approved unanimously with 58 votes in favor and 2 against it.
The possibility to issue dematerialized securities had already been introduced into Luxembourg Law in 2013. Bill 7363 is a new amendment that qualifies tokens as dematerialized securities and sets up a legal framework for the use of distributed ledger technologies (DLT) in the context of their circulation.
COOL! So, what does all that mean?
From now on, securities may also be registered in an account and transferred using secure electronic registration mechanisms such as distributed ledger technologies (i.e. Blockchain). One of the particularities of DLTs highlighted within the text is the fact that every issuance, transaction and exchange is recorded on it. Once transactions have been verified and included on a block, they can no longer be removed. This is the principle of immutability. The second principle of a DLT technology is its traceability. A distributed ledger is a secure database that keeps a record of every movement of an asset, from its first issuance on the DLT to its last ownership. The protection of this data is ensured for every transaction added to the distributed ledger as it is encrypted and “hashed” into a code. This traceability at the level of the transaction ensures the security of the system. DLT technologies are being recognized by the Luxembourg Law as a new way of managing securities accounts. While there were already some conditions for the dematerialization foreseen in the previous legal framework, this constitutes an additional alternative.
Learn more / En savoir plus / Mehr erfahren:
https://www.scoop.it/t/luxembourg-europe/?&tag=Blockchain
https://www.scoop.it/t/21st-century-learning-and-teaching/?&tag=blockchain
http://www.scoop.it/t/luxembourg-europe/?tag=Digital+L%C3%ABtzebuerg
Blockchain Law passed in Luxembourg
By Annie-Laure Mahieu, Project and Research Assistant @The LHoFT Foundation
WOO! But what is the Law about?
On 14thof February, the Luxembourg parliament passed Bill 7363 into Law on Blockchain and the circulation of tokens as dematerialized securities.
This addendum to the Law of 2001 on the circulation of securities was proposed by the Minister of Finance, Pierre Gramegna, at the end of September 2018 and approved unanimously with 58 votes in favor and 2 against it.
The possibility to issue dematerialized securities had already been introduced into Luxembourg Law in 2013. Bill 7363 is a new amendment that qualifies tokens as dematerialized securities and sets up a legal framework for the use of distributed ledger technologies (DLT) in the context of their circulation.
COOL! So, what does all that mean?
From now on, securities may also be registered in an account and transferred using secure electronic registration mechanisms such as distributed ledger technologies (i.e. Blockchain). One of the particularities of DLTs highlighted within the text is the fact that every issuance, transaction and exchange is recorded on it. Once transactions have been verified and included on a block, they can no longer be removed. This is the principle of immutability. The second principle of a DLT technology is its traceability. A distributed ledger is a secure database that keeps a record of every movement of an asset, from its first issuance on the DLT to its last ownership. The protection of this data is ensured for every transaction added to the distributed ledger as it is encrypted and “hashed” into a code. This traceability at the level of the transaction ensures the security of the system. DLT technologies are being recognized by the Luxembourg Law as a new way of managing securities accounts. While there were already some conditions for the dematerialization foreseen in the previous legal framework, this constitutes an additional alternative.
Learn more / En savoir plus / Mehr erfahren:
https://www.scoop.it/t/luxembourg-europe/?&tag=Blockchain
https://www.scoop.it/t/21st-century-learning-and-teaching/?&tag=blockchain
http://www.scoop.it/t/luxembourg-europe/?tag=Digital+L%C3%ABtzebuerg