On the 3rd of October, the Parliament unanimously passed the Token and VT Services Act (TVTG). After yesterday’s 2nd reading in Parliament, the new law can enter into force on 1 January 2020.
With the new law, Liechtenstein is the first country to have comprehensive regulation of the token economy. On the one hand, the law regulates civil law issues in connection with the protection of clients and assets. On the other hand, adequate supervision of the various service providers in the token economy will be introduced. In addition, measures will be taken to combat money laundering by making blockchain service providers subject to due diligence rules.
In addition, the law creates clarity with regard to fully digital securities. «With the TVTG, an essential 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,» said Head of Government Adrian Hasler in a Press release.