Liechtenstein has passed a report and motion to
regulate tokens and VT service providers (Token and VT Service Providers Act,
TVTG), defined as the ‘blockchain law’.
Considering the rapid evolution in blockchain and its
application areas, it is essential to define a law that is practical and
remains valid for the future generations of the technology – which is why the
new regulation uses the term “transaction systems based on trusted technologies (VT
systems)” for blockchain systems.
Since blockchain is capable of being a base
technology, the government decided to create a legal basis for the scope of the
token economy. The law not just regulates applications that are being used
today, but also legalises ICOs. Liechtenstein has been using blockchain for
quite some time now and intends to use this law to determine which requirements
apply to essential activities on VT systems.
This will not only improve customer protection, but
also simplifies any outstanding issues in the application of applicable laws –
especially regarding due diligence, compliance with international standards and
countering money laundering.
In December, Switzerland issued a report that outlines a legal framework for distributed ledger technology to be included in the current financial system. In the report, the council has proposed an amendment to the country’s securities law in order to ensure the legal certainty of crypto tokens. The Council also proposed the creation of a new “authorisation category” for infrastructure providers in the blockchain industry, and will consequently make amendments to its Financial Market Infrastructure Act.
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Credit: Blockchain News