A new bill at parliament
Luxembourg, a country famous all over the world because of its financial industry and banking institutions, just adopted a revolutionary stance when it comes to blockchain technology. The country’s lawmakers approved a legal framework that will grant transactions done in cryptocurrency the very same legal value as those done traditionally using fiat or legal tender.
The bill passed by a huge majority (58 out of 60) with only two members (from déi Lenk, the country’s left-wing party) opposing it. The initiative was Pierre Gramegna’s, who serves as Luxembourg’s Finance Minister.
Luxembourg has seen the writing on the wall when it comes to cryptocurrencies and blockchain technology and is trying to take advantage of it and benefit. And they’re doing it before almost everybody else on the planet (Malta could be the exception).
As things stand right now, this would be the only place in Europe in which a legal framework will be available for digital assets, so the new act puts Luxembourg at the world’s legal vanguard of blockchain regulation.
The lawmakers expect to ”make securities’ transfer more efficient by reducing the number of intermediaries,” according to their website.
The finance minister had this to say:
”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.”
Does it really matter?
This new law will surely be momentous for the country. Blockchain projects, exchanges, and companies of all kinds will have something of a safe haven in which their work and operations are legal and protected by the local law, which is not the case in most of the world.
Bitcoin, as well as blockchain technology and most other cryptocurrencies, still live in something of a legal limbo in which nobody knows exactly what’s allowed and what is not, and everybody is just playing it by ear. So many of the European-based crypto exchanges could suddenly find it convenient to move to Luxembourg (or, as mentioned before, to Malta) and create jobs and develop the industry there.
Many other countries will follow Luxembourg’s example, sooner or later, because the blockchain is here to stay, controversial as it remains. The pioneers always run the most risks, but also obtain the most benefits, and now the small European country stands to become the focus of the blockchain industry in Europe.
It will be exceedingly interesting to see how things keep developing for crypto in Luxembourg because it could just explode over the next few months, as soon as the industry realizes they have a place to work there, because, let’s not forget, that the cryptocurrency industry still remains rather unpopular among the world’s governments and misunderstood among those who are not very interested (and hence, know almost nothing).
We salute Luxembourg’s parliament vision and boldness and we look forward towards a time, hopefully very soon, in which most of the world’s governments will also give crypto a legal place to exist within their countries.
[Image courtesy of Pibabay]
Disclaimer: All information provided through this article should not be regarded as investment advice, nor should be taken for granted for crypto trading purposes. Before making any investment or trading plans, make sure to inquire about the information diligently by carrying out your very own research. Thank you.