Luxembourg Confirms Investment Funds Can Issue Shares Natively on Distributed Ledger

Luxembourg has confirmed that investment funds can issue shares natively on a distributed ledger, with relevant units existing solely in token form. The first edition of the "FAQ - Tokenisation" published by the Luxembourg Financial Supervisory Authority (CSSF) clarifies that Luxembourg collective investment undertakings (UCI) can use distributed ledger technology to issue native shares or units that exist only in token form, provided that the operational model complies with the applicable regulatory framework. The issuance on a distributed ledger does not determine the legal form of the underlying securities, and the relevant shares or units can be issued in registered or dematerialized form.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.