After being one of the first countries to recognize blockchain technology in the field of cash vouchers, or minibons, France has become the first country to authorize the registration and transfer of unlisted securities by using the blockchain technology.

With the aim of making France the world’s forerunner in the legal recognition of the blockchain and placing Paris at the forefront of financial innovation in Europe, the Parliament cleared the way for the Government to reform the applicable financial securities law. The purpose of this clearance was to introduce the use of a distributed ledger technology (DLT), also known as blockchain technology, to represent and transmit financial securities which are not admitted to the operations of a central depository or delivered in a settlement-delivery system of certain financial instruments.

Our full client memo describing this recognition of the blockchain is available here.