Luxembourg Passes New Law ‘Bill 7363’ to Use Blockchain in Financial Services
Bill 7363 which aimed to promote the use of Blockchain technology in financial services has been passed by the Luxembourg lawmakers.
The press release of the newly formed law said:
“The objective of Bill 7363 is to provide financial market participants with legal certainty for the circulation of securities via blockchain technology. The transfer of securities via the blockchain does not yet have legal certainty. The bill should provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries. The bill was passed with 58 yes and 2 no. The two no was from the left-wing party déi Lénk.”
The country, which has one of the highest per capita income, is trying to benefit from the expanding DLTs, which can be used for a range of financial, payment and other ends, and also underlies cryptocurrencies.
With no constitutional structure prepared at the EU or local levels, experts were apprehended the country could miss out if it fails to compete in the international race to become a default jurisdiction for the technology. The bill should “make the transfer of securities more efficient by reducing the number of intermediaries.”
Pierre Gramegna, the country’s finance minister had earlier said:
”The goal is to make sure that, if you do transactions using blockchain, you have legal certainty and the same legal strength as if you had done the same transaction without using blockchain, in a traditional manner.”
Luxembourg has long been a financial hub and business-friendly nation and the country clearly sees the potential of cryptocurrencies. It has one of the world’s largest cryptocurrency exchanges, Bitstamp. Tokyo-based Bitflyer also has offices there, after being granted a Payment Institution license to operate in the European Union.
They also have tax friendly regulations for cryptos. It is considered as an intangible asset which is not taxable till disposed and crypto assets are also exempt from VAT.