On 14 February 2019, the Luxembourg parliament passed a law permitting Distributed Ledger Technology (DLT) for the circulation of securities, facilitating the use of blockchain technology in financial services.
The law provides a greater legal certainty and transparency with regard to the usage of distributed ledgers or blockchain technology to facilitate the circulation of securities, and demonstrates Luxembourg’s proactive approach to production usage of blockchain technology. The bill is also geared to make the transfer of securities more efficient by reducing the number of intermediaries.