Luxembourg intends to confer the legal status of the blockchain

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Luxembourg intends to confer the legal status of the blockchain

The authorities of the Grand Duchy of Luxembourg, as officially referred to as one of the smallest countries in Europe, intend to regulate the technology of the blockchain.

Despite the tiny size, the state justifies the title of “Grand Duchy”: this is one of the richest countries in Europe, ranking fourth in the world in terms of income. Thanks to favorable conditions and the offshore area within the jurisdiction of Luxembourg are not less than 1000 investment funds and over 200 banks, more than any other city in the world. In addition, in the Duchy of housed the offices of many organizations, the European Union, including the European court of justice, the highest legal body of the United Europe.

The bill is intended to ensure that all transactions on the blockchain the same degree of protection and the same legal status, which are transactions without the involvement of technology.

Luxembourg’s Finance Minister Pierre Gramene believes that the government wants this step to guarantee investors protection and to give them the opportunity to freely use the blockchain as a technological tool. The Minister says:

“This bill aims to serve the interests of investors, since the technology of the blockchain is already being used – for example, shares of mutual funds”.

Luxembourg is surrounded by industrialized powers like Germany, France and Belgium, is ideally located to become a hub in blockchain. Last year, the Prime Minister and the Minister of telecommunications of Luxembourg, Xavier Bettel said:

“The government plays the role of initiator and coordinator, providing industry, the technological and commercial elections, but it stimulates beneficial projects based on advanced technologies.”

The new bill focuses mainly on blockchain. The text of the law does not mention cryptocurrency or ICO, however, says that blockchain technology “contributes to the development of new financial products and services.” Earlier this year the financial regulator in the Grand Duchy of Commission for the supervision of the financial sector (CSSF) has stated that he does not approve of the ICO model.

According to the materials of Bitcoinnews.

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