Luxembourg is an ideal place to do business in the EU, despite its small size. Soon it will be able to become a hub for every blockchain company that wants to enter the EU market.
On February 14, the European nation introduced a new bill comprising of a legal framework for the securities issued over the blockchain network. The Luxembourg Parliament – Chamber of Deputies – approved the draft law with 58 members voting in support. The bill aims to provide financial market participants with legal transaction and circulation of securities based on blockchain technology.
It also aims to give better security to the investors by making the transfer of securities more efficient by reducing the number of intermediaries. The country’s finance minister himself mentioned the fact that investors need much more transparency and security when it comes to blockchain transactions, and eliminating unnecessary intermediaries is an ideal way to solve this problem. In truth, Luxembourg promotes the peer-to-peer nature of the blockchain. The local blockchain community of Luxembourg has also welcomed the passing of the bill by its government.
Luxembourg regulators will look at securities on the blockchain as well as traditional assets, such as stocks and currencies. Luxembourg is the financial center of the European Union, so for the cryptocurrency community this is a big deal, as this could be the beginning of a wider introduction of cryptocurrencies in Europe.
Luxembourg has now become one of the few European Union countries that has adopted blockchain technology. It is now in the list next to Gibraltar and Malta. Another reason why 58 out of 60 legislators voted in favor of the bill may be the fact that they wanted to locate as many blockchain companies in the country as possible. This is a good reason for companies to flock to a small state, as was the case with RippleNet and Gibraltar.
Whatever happens, Luxembourgers will now have more opportunities to use their cryptocurrency. In addition, blockchain companies will have the opportunity to enter the EU market. At the moment, only 4% of the population of Luxembourg own a cryptocurrency, but this new bill should radically change the situation.