Luxembourg Turns Blockchain Framework Bill into Law

Bill 7363 was passed with almost unanimous approval as only two out of 60 lawmakers voted against the bill.

The new legal framework will grant Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term-based transactions the same legal status as traditional ones, according to local news outlet the Luxembourg Times.

Talking to the Luxembourg Times last year, the country’s Finance Minister Pierre Gramegna said: “The goal is to make sure that, if you do transactions using blockchain, you have legal certainty and the same legal strength as if you had done the same transaction without using blockchain, in a traditional manner.”

With this move, Luxembourg has joined the handful of European Union countries with a legal framework for the blockchain ecosystem.

In March 2018, the Luxembourg Financial Regulator CSSF issued a warning against investments in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and initial coin offerings (ICOs) to warn investors against the volatile market of digital currencies. The warning stressed on the shady business practices of various blockchain firms as they are not entirely transparent with incomprehensible business models. The regulator also noted that Luxembourg’s central bank does not consider cryptocurrencies as legal tender.

Despite being one of the Financial hubs in Europe, the country has a very low crypto penetration with only four percent of Luxembourg’s population owning cryptocurrencies, according to a 2018 survey by Ipsos.