A new law allowing the issue, holding and maintenance of dematerialised securities entirely on secured electronic registration systems, such as DLT or databases, managed by central account keepers, entered into force on 22 January 2021 (the “Blockchain II Law”). The Blockchain II Law enables Luxembourg and EEA investment firms and credit institutions to operate as central account keepers for non-listed debt securities.
The Luxembourg legislator marks another milestone for the use of new technologies in the issuance and circulation of transferable securities. The law of 22 January 2021 (the “Blockchain II Law”) amends the law of 6 April 2013 on dematerialised securities, as amended (the “Dematerialised Securities Law”) and the law of 5 April 1993 on the financial sector, as amended (the “Financial Sector Law”).
The Blockchain II Law brings further innovation with respect to the regulation of dematerialised securities in the Grand Duchy of Luxembourg by allowing investment firms and credit institutions to hold and manage securities issuance accounts via secured electronic registration systems such as distributed ledger technology (“DLT”) (e.g., blockchain) and databases.
Valerio Scollo, LL.M. (NYU), LL.M. (NUS)