Crypto association LëtzBlock has signed a memorandum of understanding with the European Crypto Initiative as part of its efforts to strengthen its ties with other organisations as EU regulations loom large. For LëtzBlock’s president, Biba Homsy, alliances are key, but so is representing Luxembourg’s interests.
An initiative reuniting 24 major crypto players in Luxembourg breathed new life into LëtzBlock, which has existed since 2018. The project is still in its early stages, and members are focused on showing their willingness to be united and have a clear voice rapidly as the EU’s crypto framework will soon be a reality they cannot afford to ignore.
LëtzBlock has signed an MoU with the Brussels-based European Crypto Initiative (EUCI), which was part of four EU associations behind the Manifesto for Blockchain. The document underscored the technology’s “potential to spur economic growth, foster social and environmental sustainability, and position Europe as a leader in digital innovation”. LëtzBlock’s president was tight-lipped on specific details of the partnership, but she stated its point of focus will be strengthening the association’s standing within the EU.
“We may not have the same view or the same position, but we need to be organised. Like in any other area, you have professionals that are organised, and we need to do the same. It’s important that we represent Luxembourg’s interests, but also that we are aligned,” said Biba Homsy, president of LëtzBlock.
Crypto regulation is still in its infancy, and the influence of associations will play a crucial role. LëtzBlock will target regulations, taxation, and corporate law as a part of its advocacy efforts. The association will also look to support crypto asset service providers and professionals, part of the ecosystem, while also focusing on the funds industry.
More regulations, more advocacy
The new EU law, Markets in Crypto Assets (MiCA), signed in 2023, is a big factor for professionals in the sector and has incentivised many of them to band together. The section concerning stablecoins will come into force on 30 June 2024, and the rest will follow on 30 December 2024. The bloc will issue guidelines in 2025 as well as a report, which makes that year a landmark in terms of the legislation being fully in force.
“The regulation that is going to come into effect changed the perspective. It changed the market. It means that you have a need for new participants.”
Still, the association’s head insists that the redefinition of LëtzBlock’s purpose came from the bottom up and is a reflection of a desire within Luxembourg’s crypto ecosystem to have an active professional organisation. Big names like Swissquote, bitFlyer, and Deloitte Luxembourg are among LëtzBlock’s members, but Homsy states it wasn’t difficult to get them involved. It was rather a case of professionals, part of the ecosystem, knowing each other but not having a place to meet and share their expertise.
Can Luxembourg be a crypto hub?
Associations like ABBL are an example of Luxembourg’s financial players having an impact on the sector and defending companies’ interests. And while the grand duchy’s status as a financial centre is a fact, we can only talk about potential when it comes to its position as a crypto hub. Homsy admits that the B2B services in the country are more developed than the B2C ones. At the same time, she is optimistic about Luxembourg’s prospects.
“It can happen. Luxembourg is steady enough and has a robust regulator. Despite everything that you hear, the CSSF is willing to understand and willing to better grasp this new class of assets.” Biba Homsy, president of LëtzBlock.
Professionals in the sector are generally well informed and engaged, according to Homsy. This awareness is key for her and can play in favour of Luxembourg becoming a crypto centre. While LëtzBlock’s president isn’t prepared to make a definitive statement on the general public’s awareness of the topic, she believes it is getting better and better. And although tools are improving as are compliance efforts, crypto scams are an ever-present factor. But it is not crypto bros in their 20s that grifters are aiming at. The age bracket of 35 to 55 rather than 25 to 35 is targeted the most by those, claims Homsy.
“Those between 35 and 55 tend to think they handle things correctly, but it’s sometimes easy to give them confidence. The ones working a lot don’t have the time to read about technology and could be a target audience.” Biba Homsy, president of LëtzBlock.
This article was first published in the Silicon Luxembourg magazine. Read the full digital version of the magazine on our website, here. You can also choose to receive a hard copy at the office or at home. Subscribe now.
