Liechtenstein’s Parliament unanimously passed the Blockchain Act, making it the first country to have comprehensive regulation of the token economy.
Liechtenstein’s Parliament has unanimously passed the Act on Tokens and Entities Providing Services Based on Trusted Technologies (TVTG), also known as the Blockchain Act.
Pioneer in comprehensive regulation
On Oct. 3, the Parliament of Liechtenstein approved the Blockchain Act, which aims to improve investor protection, combat money laundering and establish clarity. The new law will enter into force on Jan. 1, 2020. The parliament’s announcement claims that this act will make Liechtenstein the first country to have comprehensive regulation of the token economy.
The newly approved law will regulate civil law issues in relation to client and asset protection, while establishing adequate supervision of the various service providers in the token economy. Liechtenstein’s Prime Minister Adrian Hasler said:
“With the TVTG an essential element of the financial center strategy of the government is implemented and Liechtenstein is positioned as an innovative and legally secure location for providers in the token economy.”
Thomas Nägele, attorney and co-author of the Liechtenstein Blockchain Act, was quick to share the news with his social media followers. Nägele’s colleague, CEO of Bitcoin Suisse in Liechtenstein, Mauro Casellini, outlined the importance of the Blockchain Act:
“The positive decision without dissent from the Liechtenstein government shows the importance of the “Blockchain Act”. The TVTG not only creates legal certainty for all market participants, but also heralds a new era, the token economy. With its pioneering role, Liechtenstein proves once again that it is the ideal location for FinTech and Blockchain companies and thus for us too, in the heart of Europe.”
Crypto companies move to Liechtenstein
Cointelegraph previously reported that Liechtenstein’s friendly approach to blockchain has already attracted several blockchain companies. Cryptocurrency trading platform Bittrex recently announced its new trading platform, Bittrex Global, to be headquartered in Liechtenstein. Bittrex chose to establish a trading platform in Liechtenstein because of the small country’s clarity in regulating digital currencies and blockchain technology.