Liechtenstein’s Supervision of the Blockchain Sector
In the recently published March issue of Lawyer Monthly, Judith Hasler provides an overview on Liechtenstein’s Supervision of the Blockchain Sector.
On 01.01.2020 the Token and TT Service Provider Act (TVTG) came into force. With this law, the legislator intended to promote innovations, because innovations are essential to ensure a positive economic development. To strengthen innovation while protecting users and the financial market, the TVTG now provides a legal framework for companies. As technologies are subject to constant change and blockchain technology, in particular, is affected by a high pace of innovation, it was important for the legislator to find a solution that is as technology-neutral as possible. This included the definition of the term "blockchain" abstractly as "transaction on systems based on trustworthy technologies". With the TVTG the legislator also introduced the new legal entity of a "token." As a result, some fundamental legal issues had to be clarified with respect to this new legal entity. According to the TVTG, a token is a "container" of a right, and this right can include anything that is used in the legal and economic system, such as the ownership of an object or even rights of use. A difficulty in this regard was ensuring the synchronization of the world "online" and the world "offline".
Read more about the TVTG at: