January 2025 – FinTech and Blockchain Law Watch

Luxembourg Modernises the Custody Chain to Accommodate Blockchain Technology

Jan 29 2025

By: Dr. Jan Boeing, and Tanner Wonnacott

On 31 December 2024, the Luxembourg law of 20 December 2024 amending the existing legislative framework on dematerialised securities (Blockchain IV Act) entered into force. As background, dematerialization of securities occurs with the move from physical stock certificates to electronic bookkeeping. When this occurs, actual stock certificates are removed and retired from circulation in exchange for the electronic recording. Securities are then transferred between securities accounts by book transfer.

President Trump’s Executive Order Steering Digital Assets Policy

Jan 27 2025

By: Richard F. Kerr, Sarah V. Riddell, Cheryl Isaac, Jeremy M. McLaughlin, and Joshua L. Durham

As promised during his campaign, President Trump has taken significant steps to support the digital asset industry during his first week in office. On 23 January 2025, he signed an executive order initiating digital asset regulatory rollbacks and a new federal framework governing cryptocurrencies, stablecoins, and other digital assets (the Order).

Hong Kong’s Security Tokenization Support Initiative – A Subsidy Program

Jan 22 2025

By: Jay Lee, Natalie Chow and Alvin Lam

Recently, Hong Kong Monetary Authority (HKMA) initiated accepting applications for Digital Bond Grant Scheme (the Grant Scheme) to financially support digital bond issuers for the duration of three years. The Grant Scheme aims to encourage broader adoption of “tokenization technology” in capital markets and foster the development of digital securities markets in Hong Kong.

Massachusetts Revamps Its Money Transmission Law

Jan 03 2025

By: Andrew C. Glass, Gregory N. Blase, Jeremy M. McLaughlin, and Joshua L. Durham

On 2 January 2025, Massachusetts went from being one of the least regulated states for money transmission to becoming one of the more highly regulated states. Formerly, only entities engaging in foreign money transmission required licensing. Under the newly enacted Money Transmission Act (Massachusetts MTA) (H4840), covered entities will include any entity that sells or issues payment instruments or stored value, as well as any entity that receives money for transmission from a person located in Massachusetts. Such entities will soon be required to obtain a license from, and will be subject to supervision by, the Massachusetts Division of Banks. In signing the Massachusetts MTA into law, Governor Maura Healey expressed that the law is intended to protect Massachusetts consumers “when transferring money to friends and businesses through payment apps.”

Archive:January 2025