There is no doubt that the statement issued by the Commission de Surveillance du Secteur Financier (CSSF) of Luxembourg is the first constructive step towards the consensus with the Bitcoin environment and entrepreneurs. Law Library of Congress in cooperation with BitLegal proves this writing to be the first from the country on the corresponding matter.
It is not surprising that the document published on the 14th of February features common worries on the flexibility and lack of stability of the online asset and warnings addressed towards common users that might suffer sufficient loses. Although, the most attention is dedicated to the attempt to rule out and register businesses engaged in Bitcoin and other cryptographic currencies.
Text of the Communique and Related Comments
The CSSF succeeded to express the main ideas legibly and clearly on a single page. According to it, the officials, respectively the CSSF asks the existing companies operating in the Bitcoin industry to leave the underground and properly register their activities. Every application will be considered individually on the case-by-case basis.
The official document says:
“Therefore, the potential interested persons who would like to establish themselves in Luxembourg in order to carry out an activity of the financial sector (as, for instance, the issuing of means of payments in the form of virtual or other currencies, the provision of payment services using virtual or other currencies, the creation of a market (platform) to trade virtual or other currencies) shall define their business purpose and their activity in a sufficiently concrete and precise manner to allow the CSSF to determine for which status they need to receive the ministerial authorisation.”
Michael Jackson, a partner at Luxembourg-based Mangrove Capital Partners, values very high the farsightedness of the officials from Luxembourg:
“[They're saying] we’re very open to people coming here and explaining their businesses. We don’t have any problem with a Bitcoin business, as long as it does what it’s supposed to do and behaves properly.”
Even seeing advantageous differences from the attitudes of other countries, Mr.Jackson indicates gaps in previous communication between the government and the financial branch.
“There are many different models, some people are running exchanges, some people are doing transaction processing, all sorts of things, and all of these different business models have different licensing regimes. So, the first thing that you’re going to have to do is sit down.”
It is also important to emphasize that the amount of Bitcoin-related companies might be proportional to the number of citizens. However, positive policy might boost the cryptographic industry awarding points to the financial market of the country.
Returning to the evaluation of the market of Luxembourg, it would be reasonable to claim that the decision carries possible influence on other countries of the EU, who might be willing to widen financial horizons and attract investments.
Gary Cornelius, an administrator for the Bitcoin Luxembourg Facebook group, approves the fact, mentioning that there are only several merchants accepting Bitcoin, which is also an important indicator to consider.
Considering the recent information from France, the initiative from Luxembourg might be used for further research or even the development of EU standards and directives on the matter.