Blockchain Law III: Strengthening The Rules On Collateral Over Digital Assets

The Luxembourg Parliament voted Bill of law No. 8055 on certain aspects of the DLT Pilot Regime into law on 14 March 2023. It introduces specific rules for financial collateral arrangements and is the third Luxembourg law on DLT/Blockchain ("Blockchain Law III").

As a first mover in digital finance, the Luxembourg Parliament voted Bill of law No. 8055 on certain aspects of the DLT Pilot Regime into law on 14 March 2023. The DLT Pilot Regime allows firms to apply to operate a DLT-based trading facility and/or settlement system for financial instruments within a flexible regulatory environment ("DLT Pilot Regime"). The bill of law also introduces specific rules for financial collateral arrangements and is the third Luxembourg law on DLT/Blockchain ("Blockchain Law III").