Liechtenstein Blockchain Act Approved By Parliament; Improved AML And Investor Protection
The Tokens and Entities Providing Services Based on Trusted Technologies (TVTG), also called the Blockchain Act, was passed in agreement with all the members in the Parliament of Liechtenstein. With the introduction of the Act, it tends to provide the users of blockchain technology a greater legal certainty and support the digitized economy positively. The Act is meant to govern all activities that are attainable on technical systems to provide legal certainty.
The Act received a green flag on the October 3rd but is said to enter force from January 1st, 2020. The parliament believes that this act will make Liechtenstein the first country to possess a comprehensive regulative understanding of the token economy. The law aims to remove the prevailing risks of Cryptocurrencies, to offer legal certainty and security but without imposing limiting restrictions and with that provide a reliable framework for a whole economy of digital and digitized assets. Most importantly the Blockchain Act shall provide each possible asset with tokenization, digitize it and listing it on a Cryptocurrency Exchange. This is often expected to facilitate the exchange and additionally storage of possession.
Co-author and attorney of the Act – Thomas Nägele, shared the news about the Act on his social media profiles to his followers. Mauro Casellini, the CEO of Bitcoin Suisse in Liechtenstein, has precisely explained to us the significance of the Act as –
“The TVTG not only creates legal certainty for all market participants but also heralds a new era, the token economy. With its pioneering role, Liechtenstein proves once again that it is the ideal location for FinTech and Blockchain companies and thus for us too, in the heart of Europe.”
Crypto companies move to Liechtenstein
Due to the friendly approach of the Blockchain Act, Liechtenstein was able to attract several new crypto companies to its land, according to a report by Cointelegraph. Cryptocurrency trading firm Bittrex has shared to introduce its new trading platform – Bittrex Global. Bittrex chose to establish the headquarters of the platform in Liechtenstein because of the small country's regulative understanding of digital currencies and blockchain technology.