On December 21st, Luxembourg passed the “Blockchain Law 4”, aimed at making it easier for securities to adopt DLT. This is the fourth blockchain law in the country. Under the current DLT securities law, Luxembourg adopts a two-tier concept, including a central account manager similar to a central securities depository (CSD), but less cumbersome. The second tier involves account managers, i.e. custodians.
EU credit institutions or investment companies or central securities depositories (CSDs) can act as controlling agents. No license is required in Luxembourg, but regulatory authorities (CSSF) must be notified several months in advance.