Liechtenstein’s Parliament has collectively approved the Act on Tokens and Entities offering essential services on the basis of Trusted Technologies (TVTG) popularly known as Blockchain Act earlier this month on October 3.
With the approval of the new Blockchain Act, efforts will be channelized towards the direction of improving investors’ protection. The act will also emphasize on fighting the huge menace of money laundering and work towards establishing clarity.
The new Act will get effective precisely from January 1, 2020. Soon after the Act was passed, the Parliament went on to claim that the Act would make Liechtenstein first ever nation to introduce detailed regulation of the token economy. It is expected that the fresh Act will help in controlling civil law concerns in connection with client and asset security. The new law will also work towards setting up ample regulation of the several service providers in a token economy set-up.
Meanwhile, the country’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.”
The attorney and co-author of the Liechtenstein Blockchain Act, Thomas Nagele immediately shared the news on his social media handle. Nagele’s associate and CEO of Bitcoin Suisse in Liechtenstein, Mauro Caellini highlighted the significance of the Blockchain Act and said,
“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.”
Earlier, Liechtenstein’s welcoming move towards blockchain had managed to draw several leading blockchain companies to the country. Now many companies are making a beeline to establish their headquarters in the country. A few days back, Popular cryptocurrency trading company Bittrex revealed news of its fresh trading platform Bittrex Global to be set up in Liechtenstein. The sole reason why Bittrex decided to establish its headquarter in Liechtenstein is the country’s clear approach in controlling digital currencies and blockchain technology.