The law of 1 March 2019 amending the General Securities Law brings clarity to the legal status of security Tokens.
A new law amending the law of 1 August 2001 on the circulation of securities was approved by the Luxembourg parliament on 14 February 2019.
The new law entered into force on 5 March 2019. The new law validates the principle of technological neutrality by allowing the use of secure electronic registration mechanisms for the issuance and circulation of securities. The new law provides clarity to the legal framework of security tokens in Luxembourg by confirming that securities can be held through digital ledger technologies such as blockchain. A new form of security is available in the Luxembourg tool box.
The GSK Update is available as download.
Valerio Scollo, LL.M. (NYU), LL.M. (NUS)