Luxembourgs Blockchain Law 4 eases DLT securities issuance [Video]

As tokenization takes root globally, Luxembourg has adopted a new law that seeks to make the issuance of digital securities easier, cheaper, and more efficient.

Luxembourg’s parliament recently passed Blockchain Law 4, the country’s latest effort to facilitate blockchain adoption. It’s the fourth in a line of blockchain laws; the first was implemented back in 2019. The latest framework provides a simplified regime for “the issuance, recording, and transfer of ownership of dematerialized debt and equity securities using DLT (distributed ledger technology).”

Luxembourg for Finance, the country’s financial development agency, says the new law will cement the country’s “pioneering role within the European Union in the use of DLT technology, particularly in the domain of dematerialized securities issuance.”

Dematerialized securities exist only electronically and are recorded in a central depository system, such as stocks, bonds and exchange-traded funds (ETFs).

The standout provision of the new law is the introduction of a control agent whose aim …