Luxembourg is fairly open to ICOs and cryptocurrencies as even though it regulates them, it has chosen not to tax them but just ask them to register with the government and receive authorization. These practices suggest it will remain hispitable to ICOs even with new regulations from the EU.
Luxembourg is located in Europe (EU): The countries of the European Union hold a patchwork of individual attitudes towards cryptocurrency regulation, but all of them also fall under the jurisdiction of the EU Commission.
Cryptocurrency trading in Luxembourg
Luxembourg is the home of the first fully-licensed bitcoin exchange in Europe and has a history of being open to new financial innovation. Luxembourg has opposed the new EU regulations on cryptocurrencies when they were in draft form and does not tax cryptocurrencies
But Financial services providers, which could include virtual currency businesses, must receive authorization from the Minister of Finance.
But In January the EU came out with new directives on cryptocurrencies, asserting that “gaps still exist in the oversight of the many financial means used by terrorists, from cash and trade in cultural artefacts to virtual currencies and anonymous prepaid cards. This proposal seeks to address those gaps while avoiding unnecessary obstacles to the functioning of payments and financial markets for ordinary, law-abiding citizens and businesses, so balancing the need to increase security with the need to protect fundamental rights, including data protection, and economic freedoms.”
Mostly focused on ending anonymity among the crypto community, and preventing nefarious individuals from buying, funding, or selling orgs or resources. It does include the sharing of company and individual information with public entities at times, and affects exchanges and wallets.
Regulation of ICOs in Luxembourg
ICOs were previously unregulated but now that will change in accordance with new EU regulations.
IBC’s planning and strategy team can provide expert advice on ICOs in different jurisdictions. If you’re thinking of holding an ICO in COUNTRY and you’d like more information, contact us here.
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