The Liechtenstein Government has adopted the report and motion on Tokens and Trustworthy Technology Service Providers (Token and TT Service Provider Act; TVTG). This is more frequently referred to as the Liechtenstein Blockchain Act. The TVTG also now introduces a “new legal object” described as “token” as digital representations with legal certainty on TT systems.
According to the official press release, it has used the legal definition of “transaction systems based on trustworthy technologies (TT systems)” to describe blockchain systems. This is in recognition of the fast pace of blockchain technology development and widening areas of application, and the need to draft laws that are “abstract” enough to ensure it can be applicable to subsequent generations of the technology.
The principality’s blockchain laws seek to be a holistic legal framework, to set new legal standards for the crypto industry as a whole, not just in segmented silos.
The new Blockchain Act will regulate the issuing and creation of any security tokens or digital assets in any form, including IOU Tokens (Loan, Debt, Bonds), Derivative Tokens, Fund Tokens, Equity Tokens, Membership Tokens, Joint-Ownership Tokens, Co-Ownership Tokens, and Sole-Ownership Tokens.
The TVTG also now introduces a “new legal object” described as “token” as digital representations with legal certainty on TT systems.
Earlier this year, Bank Frick in Liechtenstein announced that it will be starting up a subsidiary service to provide a secure environment for institutional investors to trade in digital assets.
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