New law brings Luxembourg to the forefront of distributed ledger technology
On 22 January 2021 Parliament approved Bill 7637, which modified:
- the Law of 5 April 1993 on the financial sector; and
- the Law of 6 April 2013 on dematerialised securities.
The bill entered into force on 26 January 2021.
The bill introduces important modifications with respect to the direct issuance of dematerialised securities using distributed ledger technology (DLT). Further, it widens the central account keeper role by enabling any EU credit institution or investment firm to record and operate DLT issuances of unlisted debt securities.