Luxembourg’s legislators passed Law 7363, which facilitates the use of blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details technology in financial services, – reported in an official statement issued by the country's parliament by the Chamber of Deputies on February 14.
The objectives of the new law provide financial market participants with greater transparency and legal certainty regarding the circulation of securities using blockchain technology. The law also aims to make the transfer of securities more efficient by reducing the number of intermediaries.
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According to the local Luxembourg Time news agency, the law provides transactions using the blockchain technology with the same legal status and protection as the traditional one. According to reports, out of 60 parliamentarians, only two members of the déi Lénk party voted against the law.
Luxembourg is known for its active approach to blockchain technology. In November 2018, the University of Luxembourg entered into a partnership with the Luxembourg-based VNX Exchange tradingTrading
– is an economic term that means the process of independent trade, independent analysis of the market and the conclusion of trade transactions.Details platform to enhance the security of digital assets.
In March, the CSSF, the Luxembourg financial regulator, issued a warning against investment in cryptocurrencies and Initial coin offering (ICO). The regulator noted in a warning that cryptocurrencies are not supported by any central bank, and warned against the volatilityVolatility
– is a financial term that means a statistical indicator of price change. In the cryptocurrency world, it is used by traders as an indicator for managing financial risks. That is, it is a measure of trade risk and as a financial analytical tool for gambling. Details of virtual currencies, stressing that transactions are often not entirely transparent, and business models are incomprehensible.
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Meanwhile, a study conducted by the Ipsos research company on behalf of the Dutch ING Bank BV in June showed that the lowest percentage of people owning cryptocurrency – 4 percent – in Luxembourg.
Editor: Yulia Krasnaya