Because of its reputation as a stable political and economic area, as well as a regulatory environment that’s favorable to outsiders, many foreign companies have chosen Luxembourg as an entry point into Europe.
According to a report, the Chinese startup PingPong, a FinTech company, will invest €100 million ($113 million) in Luxembourg.
The company was founded in 2014, and grew in Alibaba’s backyard – the city of Hangzhou. Seen as one of the standard bearers of China’s thriving eCommerce space, PingPong also has the backing of CICC, one of China’s biggest investment banks.
PingPong collects payments from exporters selling through eCommerce platforms like Amazon, Newegg and Shopee, and the clearance of potential regulatory roadblocks is an important part of its business.
Luo Yonglong, a partner at PingPong, said the company plans to surpass a $7.21 billion investment in Europe. “We are actively following the country’s Belt and Road Initiative to empower Chinese businesses through innovation in the cross-border ecosystem,” said Luo in a statement. “This will help companies complete their digital transformation and be more competitive abroad.”
PingPong and Luxembourg’s relationship goes back to 2017, when the FinTech startup got a payments license in the region, which allowed it to operate between Chinese outfits and customers in Europe.
Earlier this year, Luxembourg passed a bill to amend an existing securities law so that it includes blockchain. According to CoinDesk, the country’s parliament passed Titled Bill 7363 to “provide greater certainty for investors and make the transfer of securities more efficient by reducing the number of intermediaries,” the chamber said.
Luxembourg had already passed a bill to legally issue “dematerialized securities” in April 2013 through an amendment to a 2001 securities law. This latest legislation further changes the 2001 law to also include the distribution of securities via secure electronic registration, “such as distributed ledger technology and, in particular, blockchain technology.”