The parliament of Liechtenstein has unanimously accepted the Blockchain Act. From next year the European country will have a full and regulatory framework for blockchain technology and cryptocurrencies. The Act on Tokens and Entities Providing Services Based on Trusted Technologies (TVTG) helps combating money laundering, adds protections for token investors, and intends clear regulations around this emerging technology.
What Liechtenstein is doing different from many other countries, is that the country is not trying to fit the technology into its existing laws. Instead the government has build an entire new framework with their Blockchain Act. Crypto and blockchain companies, like Bittrex, will be happy to now rely on clear legal boundaries for their operations.
“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.”Prime Minister of Liechtenstein, Adrian Hasler – government statement
Smaller countries stepping up their crypto game
All around Europe smaller countries have been changing their laws in order to attract blockchain startups. They want to position themselves as leaders in the blockchain space. In the past couple of years Malta has become an attractive location for blockchain companies. For example, the popular crypto exchange Binance has its European office there.
In addition Estonia has very specific laws for banking licenses. As a result it’s relatively easy for blockchain startups the obtain an European banking license. In recent month other countries have also stepped up. San Marino provides crypto incentives to citizens who are ‘green’. In addition many tokenized businesses have found shelter in the neutral country of Switzerland, including Facebook’s Libra Association.
Also published on Medium.