On 17 March 2023, the law of 15 March 2023 implementing the EU Regulation 2022/858 on a pilot regime for market infrastructures based on distributed ledger technology (DLT) was published in the Luxembourg Official Gazette: the Law Blockchain III.

The Law Blockchain III, which will enter into force on 23 March 2023, follows the Law of 1st March 2019 and the Law of 22 January 2021 (the Blockchain I and II Laws) which have already enabled market participants to use DLT in the circulation and issue of financial instruments.

The Law Blockchain III goes a step further as it will enable the implementation in Luxembourg of the pilot regime resulting from the EU Regulation 2022/858 allowing national authorities to temporarily exempt market infrastructures wishing to use DLT of some requirements imposed by existing legislation. For that purpose, the Law Blockchain III includes minor modifications to the amended law of 5 April 1993 on the financial sector, the amended Law of 5 August 2005 on financial collateral arrangements and the amended Law of 30 May 2018 on markets in financial instruments.

The ABBL is supportive of that legal initiative as it will enable Luxembourg to continue to be a front-runner regarding the use of DLT.

ABBL's positions on Blockchain I, II and III

Contact

Jonathan

Hug

Senior Legal Adviser