Draft Luxembourg law 7363

In September 2018, a draft law was lodged which would amend the methods available for recording the issuance and circulation of securities for Luxembourg entities whose securities are held or maintained by a financial sector actor.

There is only one article, which would allow for the use of blockchain-type technologies for a decentralised management. Interesting – and useful – aspects include clarifications that transfers would be considered equivalent to transfers between accounts, and that the securities would remain “fungible”.

The commentary demonstrates the Luxembourg legislator’s embrace of the “token” concept, stating that a token is “essentially a digital asset stored in a blockchain which, like a paper security or a conventional dematerialised security, represents the "security". This is from a technological point of view a new type of dematerialized security, but one that legally has attached to it the same rights as conventional dematerialized securities.”

LëtzBlock welcomes this draft law, and looks forward to a further extension to all Luxembourg companies in due course.

You can check the draft law by clicking on the below link.