Luxembourg Passes Blockchain Law to Facilitate DLT Securities

According to Foresight News, Luxembourg has enacted its fourth blockchain law, known as 'Blockchain Law 4,' aimed at simplifying the adoption of distributed ledger technology (DLT) for securities. The new legislation introduces a two-tier system under the current DLT securities framework. The first tier involves a central account manager, akin to a central securities depository (CSD), but with less complexity. The second tier pertains to account managers, or custodians. In this framework, EU credit institutions, investment firms, or central securities depositories can act as control agents. While obtaining a license in Luxembourg is not required, entities must notify the regulatory authority, the Commission de Surveillance du Secteur Financier (CSSF), several months in advance.