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Liechtenstein’s Blockchain Act: A Beacon for Crypto Businesses

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Liechtenstein, located between Switzerland and Austria, has established itself as a leader in the blockchain and crypto industry. The country was one of the first to introduce specific legislation on crypto and blockchain, known as the Token and Trusted Technology Service Providers Act (TVTG) or the Liechtenstein Blockchain Act. This law, which became effective on 1 January 2020, provided regulatory certainty and attracted an upsurge in the number of crypto service providers.

The Blockchain Act categorizes and handles tokens based on their function, making it capable of accommodating new industry developments. Liechtenstein's upcoming Markets in Crypto-Assets (MiCA) regulation appears to be in line with the Blockchain Act. The country's Office for Financial Market Innovation and Digitization director has highlighted the urgent need to close regulatory gaps related to staking or borrowing and lending of customer tokens by crypto exchanges.

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