Liechtenstein passes new blockchain act
Liechtenstein’s parliament has passed the Blockchain Act. The new law, which will come into force on January 1, 2020, aims to strengthen legal certainty for innovative companies.
Liechtenstein’s parliament unanimously passed the Law on Tokens and Trustworthy Providers (TVTG9, also known as the Blockchain Act, on Thursday. The new law will come into force on 1 January, 2020, making Liechtenstein “the first country comprehensively regulate the token economy”, according to a government statement.
The new law aims to regulate civil law matters in connection with customer and asset protection, while at the same time introduce “adequate supervision of the various service providers in the token economy”. It is also meant to help combat money laundering by making service providers subject to due diligence rules. In addition, it creates greater clarity with regard to fully digital securities.
“Thanks to the TVTG, a key element of the government’s financial center strategy will be implemented and Liechtenstein will be positioned as an innovative and legally secure location for providers in the token economy,” Prime Minister Adrian Hasler said.
Liechtenstein has already been able to attract several innovative companies with its innovation-friendly approach, such as Bittrex International, a digital asset trading platform. When Bittrex announced in the summer that it was expanding its platform Liechtenstein, Bittrex CEO Bill Shihara praised the legal certainty for blockchain companies in Liechtenstein. “The Liechtensteiner government and regulators are taking a very proactive, pro-business approach looking to foster innovation in blockchain,” Shihara said.