One of Europe’s smallest but richest nations, Liechtenstein, has made a significant step towards clarifying the regulatory environment in its already crypto-friendly jurisdiction. The parliament of the German-speaking principality in the heart of Europe has just passed a law that is likely to entice even more crypto companies to its territory.
Comprehensive Regulatory Framework Passed Unanimously
On October 3, Liechtenstein’s legislature voted unanimously to approve the “Token and Trustworthy Technology Service Providers Act” (abbreviated TVTG in German), the microstate’s government announced on its website. The adoption comes after the executive power approved a motion in May to create the dedicated legislation which will now enter into force on Jan. 1, 2020.
With the new law, Liechtenstein becomes the first country to comprehensively regulate the token economy, the government notes in its announcement. “On the one hand, the law regulates civil law issues in relation to client protection and asset protection. On the other hand, adequate supervision of the various service providers in the token economy will be established,” officials point out.
“With the TVTG, an essential element of the government’s financial market 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 elaborated, as quoted in the press release.
Liechtenstein aims to create clarity with respect to digital securities, the government adds. Regulating the tokenization of various rights and assets is the focal point of the legal document. As the CEO of Bitcoin Suisse (Liechtenstein) Mauro Casellini put it, speaking to the German outlet BTC Echo, “The TVTG not only creates legal certainty for all market participants, but