Luxembourg, Jan 29, 2021 /AlexaBlockchain/ – Luxembourg Parliament has amended its Legal Framework to allow issuance of dematerialized securities using distributed ledger technology (DLT).
On 21 January 2021, the Luxembourg Parliament approved Bill 7637 (to be referred to as the Blockchain II Act 2021) aiming at modernizing the law of 6 April 2013 on dematerialized securities by expressly recognizing the possibility of using secure electronic registration mechanisms (dispositifs d’enregistrement électroniques sécurisés), including distributed ledgers for the purpose of issuing dematerialized securities. The adopted law was subsequently published in the Mémorial A on 22 January 2021 (the “Law of 22 January 2021”).
The Blockchain II Act 2021 allows (a) the issuance of dematerialized securities in DLT (distributed ledger technology) devices and (b) opens the central account keeper role to record and operate DLT issuances of unlisted debt securities to any EU credit institutions or investment firms.
