Blockchain Act unanimously approved in Liechtenstein

The Law on Token and Trust Economy Service Providers passed by the Principality’s Parliament on October 3 will enter into force on January 1, 2020.

The Parliament of the Principality of Liechtenstein has passed the Law on Token and TT Service Providers (TVTG). This means that the legislation, although passed unanimously on October 3, 2019, will be able to come into force and deploy on January 1, 2020.

By virtue of the new legislation, Liechtenstein is the first country to have comprehensive regulation of the coin-operated economy.

Umbrella law will adapt Swiss law to blockchain

On the one hand, it will regulate civil law issues in relation to client protection and asset protection. On the other, an appropriate supervisory structure will be established to monitor the various service providers in the blockchain business.

War on money laundering

In addition, there are measures to combat money laundering by making providers of these types of services subject to anti-money laundering and anti-terrorism regulations. In addition, the legislation passed in Vaduz provides clarity with regard to digital securities.

“With the TVTG (Token- und VT-Dienstleister-Gesetz, ed.), an essential element in our government’s financial market strategy will be implemented and Liechtenstein will position itself as an innovative and legally secure location for service providers in the ‘token economy,'” said Prime Minister Adrian Hasler.