Liechtenstein Parliament Endorses Elaborate Blockchain Bill Governing Token Economy
A detailed Act on Tokens and Entities Providing Services Based On Trusted Technologies (TVTG), also referred to as the Blockchain Act, was approved by the Liechtenstein’s Parliament.
On October 3, the Liechtenstein parliament endorsed the Blockchain Act, which intends to enhance investor safety, battle money laundering and ensure lucidity.
The latest law will turn effective on January 1, 2020. The act will turn Liechtenstein the first nation to have elaborate regulation for the token economy.
The recently endorsed rule will oversee civil law problems related to customer and asset safety, while enforcing enough monitoring of the numerous service providers in the token economy. Liechtenstein’s Prime Minister Adrian Hasler said:
“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.”
Thomas Nägele, attorney and co-author of the Liechtenstein Blockchain Act, was prompt to distribute the news through social media platform. Nägele’s associate, CEO of Bitcoin Suisse in Liechtenstein, Mauro Casellini, underlined the significance of the Blockchain Act:
“The positive decision without dissent from the Liechtenstein government shows the importance of the “Blockchain Act”. 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.”
Liechtenstein’s amicable response to blockchain has lured numerous blockchain firms. Cryptocurrency trading platform Bittrex has stated that its new trading platform, Bittrex Global, will function from Liechtenstein. Bittrex opted to setup its trading platform in Liechtenstein as the country had established simple and clear rules to regulate cryptocurrencies and blockchain technology.