On 22 January 2021 Parliament approved Bill 7637, which
modified:
- the Law of 5 April 1993 on the financial sector;
and
- the Law of 6 April 2013 on dematerialised
securities.
The bill entered into force on 26 January 2021.
The bill introduces important modifications with respect to
the direct issuance of dematerialised securities using distributed
ledger technology (DLT). Further, it widens the central account
keeper role by enabling any EU credit institution or investment
firm to record and operate DLT issuances of unlisted debt
securities.
The bill complements the modifications made, most recently on 1
March 2019, to the Law of 1 August 2001. The 2019 modifications
enabled account keepers in Luxembourg, from a legal standpoint, to
register and hold securities in securities accounts via DLT.
However, this amendment facilitated the use of only DLT securities
accounts and did not mention issuance accounts. Therefore,
securities in issuance accounts were
