Luxembourg races to attract innovation through blockchain regulation

The Luxembourg Parliament is scheduled to discuss on 14th October a bill handed down by the government for the creation of a legal framework involving the use of blockchain in financial transactions.

Finance Minister Pierre Gramegna says in an interview with the Luxembourg Times that the bill is aimed at providing investors with ”an additional layer of legal certainty”.

Gramegna adds that the main “goal is to make sure that, if you do transactions using blockchain, they have legal certainty and the same legal strength as if you had done the same transaction without using blockchain, traditionally”.

No decision before end of month

The Luxembourg Chamber of Deputies will begin debating the bill in the second week of next month, but no decision is expected before the end of October. Luxembourg will hold general elections on 14th October, and the new Parliament will be sworn in on 30th October. The new legislators will have ”plenty of legislation to enact, which they are going to take one after the other”.

Gramegna explains that the bill is for the benefit of the financial sector and “not a political issue at all. This was in the best interests of the financial sector, as there have already been transactions done using blockchain, such as distributing parts of investment funds, for example.”

Regional blockchain rules required

He also suggests the European Union should consider implementing broader regional rules for blockchain governance. The move is based on industry concerns that Luxembourg could miss out if it fails to compete in the international race to attract startups and ICOs.

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