February 15, 2019 8:26 PM
The European country updates its definition of dematerialized securities to include documents registered on a blockchain.
Luxembourg’s Chamber of Deputies, the country’s 60-person parliament, approved bill 7363 on Thursday, February 14, thereby establishing a regulatory framework for securities issued on blockchains. Passing with 58 parliament members voting yes and two voting no, the bill aims to offer “greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries.”
Bill 7363 has roots in two previous securities-related laws passed in Luxembourg. The first, passed in August 2001, dealt with the legal circulation of securities within the country. It was then modernized in April 2013 with an amendment that gave legal status to “dematerialized securities.” Dematerialized securities are securities that “are not evidenced by any paper support documentation.”
Bill 7363 further updates the umbrella of dematerialized securities to include “the circulation of securities on the basis of secure electronic registration technologies, such as distributed ledger technology and in particular ‘blockchain‘ technology.”
Essentially, the bill gives blockchain securities the same legal status as traditionally issued securities. The bill conceptualizes blockchain-issued securities as tokens that act as digital assets “legally bound by the same rights as classic dematerialized securities.”
In June 2018, ETHNews covered the memorandum of understanding signed between the Luxembourg House of Financial Technology (LHoFT) and two departments at the University of Luxembourg: the Interdisciplinary Centre for Security, Reliability and Trust, and the Faculty of Law, Economics and Finance. The partnership was formed to help facilitate the sharing of blockchain solutions and ICO regulation research between the LHoFT and the university’s two departments.
Translations by Google.
Nicholas Ruggieri studied English with an emphasis in creative writing at the University of Nevada, Reno. When he’s not quoting Vines at anyone who’s willing to listen, you’ll find him listening to too many podcasts, reading too many books, and crocheting too many sweaters for his dogs, RT and Peterman.
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