The Ministry for General Government Affairs and Finance of Liechtenstein published a consultation report on the country's new Blockchain Act, entitled (translated) the 'Consultation report on the Law on Transaction Systems Based on Trustworthy Technologies (TT) (Blockchain Act; TT Act; VTG) and the amendment of further laws.' (In original German as 'Vernehmlassungsbericht der regierung betreffend die schaffung eines gesetzes über auf vertrauenswürdigen technologien (VT) beruhende transaktionssysteme (blockchain-gesetz; vt-gesetz; VTG) und die abänderung weiterer gesetze.')
The Blockchain Act is intended to be a framework to provide a legal basis (recognition and certainty) for token based applications in the 'token economy' which is anticipated to reach a multitude of sectors. Regarding regulation, tokens are classified as utility tokens, payment tokens (currencies, cryptocurrencies and coins) and security tokens (equity, securities, assets.)
Topics in the draft Blockchain Act cover the definition of Trusted Technologies (which guarantee token integrity), disposal rights, VT service provider requirements, token issuance requirements, registration requirements, supervision and penalties.
Excerpts from the Government of Lichtenstein's press release announcing the Lichtenstein Blockchain Act include the following:
In its meeting of 28 August 2018, the Government adopted the consultation report on the Law on Transaction Systems Based on Trustworthy Technologies (TT) (Blockchain Act; TT Act; VTG) and the amendment of further laws...
The legal classification of elements on blockchain systems is another focus of this proposal. The Blockchain Act defines the term "token" as a new construct to enable the transformation of the "real" world to blockchain systems while ensuring legal certainty, thereby opening up the full application potential of the token economy. The introduction of the legal construct of the "token" in Liechtenstein law requires that the legal consequences – such as ownership, possession, and transfer – must also be legally defined...
Due to the great potential of the token economy for large parts of the economy, the Government intends for this law to strengthen legal certainty for users and service providers in order to support the positive development of the token economy in Liechtenstein. The Government is thereby also responding to the need of market participants for greater legal certainty in connection with blockchain systems.
Information from this summary and translation also provide by the following sources:
- OWN (2018) The Liechtenstein Blockchain Act
- PWC (2018) Liechtenstein publishes draft of the new Blockchain Act