The Liechtenstein Parliament has unanimously approved the Act on Token and Entities Providing Services Based on Trusted Technologies (TVTG) or the Blockchain Act. The approval will facilitate protection for investors as well as assist in eliminating money laundering instances. The parliament states that the country is the first to have implemented regulations on the token economy.

“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,” said Liechtenstein’s Prime Minister Adrian Hasler.

The new law is expected to regulate civil law issues in relation to client and asset regulation, assist in clarifications regarding digital securities’ as well as establish regulations for the supervision of the service providers in the token economy. The Act also aims to assist in curbing money laundering activities by subjecting service providers to AML and CFT regulations.

The new act will be effective from January 1, 2020.

by Megha Bhattacharya
Market Analyst at IBS Intelligence