Technology

Luxembourg is leading the way in Europe when it comes to crypto and blockchain technology. With MiCA, a new set of regulations from the European Parliament, Luxembourg’s early bet on cryptocurrency has been validated. We spoke with Nasir Zubairi, CEO of LHoFT - Luxembourg House of Financial Technology, who sees this as an opportunity for cryptocurrencies and crypto assets to enter mainstream markets within EU countries, and heard from banking association ABBL.

For Luxembourg’s crypto community, Thursday’s adoption of the MiCA regulation in the European Parliament reassures established financial players and offers an EU passportable licensing regime with no need for national transposition in member states. “It enables new ways of issuance and distribution of new types of assets,” said ABBL.

Europe’s long-awaited Markets in Crypto-Assets regulation is finally coming up for a vote this coming Thursday at the European Parliament’s meeting in Strasbourg. Players in the crypto industry around the world and in Luxembourg, from cryptocurrency to NFT providers are closely parsing the text that will be voted on. 

This Luxembourg edition of IO Talks hears about the latest developments in the realm of blockchain technology in the asset management and investment industry. 

The data science revolution is sweeping the investment industry. Some firms are looking to create an in-house solution combining artificial intelligence, machine learning and data science. Picking the right data set, and separating the wheat from the chaff, is critical. 

The first day of the 2023 ALFI European Asset Management Conference heard from the head of the European Securities and Markets Authority, Verena Ross, and included panels on the impact of blockchain and digital assets, as well as corporate taxation.

A survey conducted among 300 investment institutions, including asset managers, asset owners and insurance firms, has found a mixed understanding of digital assets among investment professionals. The results point to different levels of readiness to using digital assets and investment technology.

Communication technology continues its rapid development, but it’s inevitably affected by the world that it serves, so it must contend with concerns about sustainability and the impact of the economic situation, as well as the legal context. The emergence of ChatGPT as a new form of artificial intelligence might promise much, but it may misuse others’ content, Deloitte argues in its outlook for Telecoms, Media and Technology, or TMT.

The European Investment Bank has issued its first natively digital bond denominated in British pounds. The EIB raised 50 million with the bond, which has a duration of two years and bears a floating rate of interest.

BNP Paribas, HSBC and RBC Capital Markets are the joint lead managers. The syndicate was advised by Allen & Overy. EIB was advised by Clifford Chance.

High hopes for crypto’s ability to revolutionise the financial world were dealt a harsh reality check with the collapse of the FTX cryptocurrency exchange last year. With Luxembourg having early on placed a bet on crypto, some have suggested it could suffer reputational damage. New regulation including the European Union’s MiCA regulation however may offer a way to do crypto safely, Thursday’s debate at Swissquote’s Luxembourg event heard.