Luxembourg passes new blockchain law to simplify digital fund issuance

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PANews
12-21
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PANews on December 21 reported, according to Ledger Insights, Luxembourg has passed the 'Blockchain Law 4' to make the adoption of DLT for securities easier. This is the fourth blockchain law in the country. The new legislation introduces an optional role of a digital securities issuance control agent. Based on the current DLT securities law, Luxembourg adopts a two-tier concept, including a central account manager, similar to a central securities depository (CSD) but less cumbersome. The second tier involves account managers, i.e. custodians. Due to the two-tier involvement, there is still a need for reconciliation processes that DLT can avoid. EU credit institutions or investment firms or central securities depositories (CSDs) can act as control agents. They do not need to obtain a license in Luxembourg but must notify the regulator (CSSF) a few months in advance.

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