Luxembourg’s financial regulator CSSF publishes blockchain white paper

time:2022-01-27 07:00 source:Internet

Luxembourg’s financial regulator, the Commission de Surveillance du Secteur Financier (CSSF), has released a white paper on blockchain. The CSSF acknowledges that blockchain “like other innovations, can bring advantages and opportunities to the financial sector. However, it notes that these “evolving technology-based innovations” pose challenges for regulators. The CSSF emphasizes that it does not endorse Using blockchain, but outlining three examples of use cases. These include KYC, reducing intermediaries involved in cross-border payments, blockchain for distribution of funds. CSSF has done a great job of creating a checklist for risk assessment It divides these areas into governance, DLT-specific technical risks and traditional ICT risks. When it comes to DLT specific technologies, CSSF believes that there are five risk areas: blockchain design, node management, smart contracts, keys Governance and Privacy Issues.

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