Skip to main content

Clifford Chance

Clifford Chance


Luxembourg bill of law proposes recognition of DLT for the issuance of dematerialised securities

30 July 2020

The Luxembourg government has submitted a bill (bill of law n°7637) to the Luxembourg Parliament with the aim to modernise the existing legal framework for dematerialised securities.

The bill forms part of the continued modernisation of Luxembourg's legal framework for finance transactions and is a continuation of the law of 1 March 2019 which has expressly recognised the possibility to hold and register book-entry securities in securities accounts by way of distributed ledger technology (DLT). The bill recognises the possibility to use secure electronic recording systems (including DLT) for dematerialised securities (whether at issuance or upon conversion from another form of security). The publication of the bill constitutes the start of the legislative procedure. This briefing summarises the key aspects of the proposed framework.

Download PDF