Luxembourg continues to strengthen its position as a financial hub, attracting startups, particularly in the fintech sector. As of November 2024, the country has announced several new initiatives aimed at fostering financial innovation:
- CSSF Innovation Hub (Commission de Surveillance du Secteur Financier). This platform serves as a single point of contact for entrepreneurs to discuss innovative financial projects. It is designed to simplify the launch of financial technologies and address key regulatory challenges.
- Simplified Regulations for Cryptocurrency Companies. Luxembourg has updated its rules for cryptocurrency operators, maintaining strict measures against money laundering (AML) and terrorism financing. The new regulations include clearer licensing requirements and alignment with the EU’s DORA directive (Digital Operational Resilience Act).
- Eased Requirements for Startups. Luxembourg has introduced tailored support mechanisms for young financial companies, reducing bureaucratic hurdles and optimizing tax procedures to encourage new business formation.
- Enhanced Financial Crime Prevention. Alongside regulatory updates, Luxembourg emphasizes transaction transparency by implementing the Sixth EU Anti-Money Laundering Directive (AMLD6) and establishing the European Anti-Money Laundering Authority (AMLA).
These measures aim to make Luxembourg even more attractive to international investors and tech companies seeking a stable and transparent platform for business expansion.