Prime Minister Adrian Hasler presented yesterday (21 June 2018) the Liechtenstein Blockchain Act. Liechtenstein is one of the first countries to introduce such an act.
Hundreds of companies that earn their money through Blockchain have moved to Liechtenstein. Some Liechtenstein banks, the Financial Martket Supervisory Authority and now also the head of government Adrian Hasler have adjusted completely to these companies, and their number is growing. While the Swiss Confederation is still exploring legal aspects and will not present its report until the end of the year, Liechtenstein presented yesterday its approach of a law for the Token Economy. The law will be one of the first in the world and aims to stop excesses of the industry and, above all, provide legal certainty for the good players in the market. Adrian Hasler and Thomas Dünser from the Ministry of Presidential and Finance presented the cornerstones of this law at an information event at the University of Liechtenstein yesterday evening.
Full house: Presentation of the Liechtenstein Blockchain Act, yesterday at the University of Liechtenstein
To protect users and service providers
Through the law, the government wants to protect users and service providers. The main question is how to establish confidence in digital legal transactions. "It is my goal to support the development of the Blockchain economy through good frame conditions," Hasler explained in his address. The head of government was convinced that the full potential of the blockchain can only be exploited if users and service providers have the legal certainty to be able to buy and sell assets digitally. "Therefore, the rules on which our economic and legal system is based must also be applied to the token economy." The members of a task force, including attorney Thomas Nägele, modelled the cornerstones of this economy.
Experts consider a «Lex ICO» to be unsuitable, as it would establish a technology in the law that no one would be interested in in a few years' time. Neutral formulations are therefore required.
What the Act does
And so is the approach of the Liechtenstein government, which established a legal definition of the most important elements of a token economy. The aim is to regulate the emission of tokens and to create legal certainty in the delegation for the safekeeping of tokens. The activity is supervised and requires a license according to banking law or trustee law. There will be a legal distinction between owner, holder and deputy of a token. Bankruptcy regulations are also intended to protect investors.
Liechtenstein is taking a bold step. Ideally, the initiators hope that the law will attract hundreds, perhaps even thousands, of more companies to generate growth. The law will go into public consultation this summer - the exact wording will be known by then at the latest - and is scheduled to enter into force in summer 2019.
Summary: 7 Bullet Points about the Liechtenstein Blockchain Act
- Legal definition of elements of a token economy
- Basic token model to establish a token economy
- Ensure legal certainty when purchasing tokens
- bankruptcy regulations
- Definition of minimum standards for service providers
- Minimum Standards for Token Emission
- Procedures and rules for state supervision