The Token and TT Ser­vice Provider Act (TVTG), also com­mon­ly referred to the Blockchain Act has been approved by Licht­en­stein Par­lia­ment this Octo­ber 3, 2019. The law can offi­cial­ly enter into force on Jan­u­ary 1, 2020, and is like­ly to be passed in ear­ly 2020. The new law, which includes com­pre­hen­sive reg­u­la­tions of tokens, enables excel­lent oppor­tu­ni­ties for blockchain and cryp­to projects. It will not only reg­u­late civ­il law issues con­cern­ing client and asset pro­tec­tion but also include sur­veil­lance of var­i­ous ser­vice providers based in the Licht­en­stein cryp­to industry.

New Token Stan­dards from the Blockchain Act

Com­pared to oth­er token juris­dic­tions, the Blockchain Act from Liecht­en­stein offers unique reg­u­la­tions for tokens. Token emis­sions can be approved with­in sev­er­al months by Liecht­en­stein’s Finan­cial Mar­ket Author­i­ty (FMA).

The “Token Con­tain­er Mod­el” intro­duced by Liecht­en­stein defines the token as a con­tain­er where all types of rights may be placed with­in. The new mod­el opens the token for more than just secu­ri­ties, includ­ing patents, music rights, trade­mark rights, soft­ware rights, to name a few. Prime Min­is­ter Adri­an Hasler says that “with the TVTG, an essen­tial ele­ment of the gov­ern­men­t’s finan­cial mar­ket strat­e­gy will be imple­ment­ed, and Liecht­en­stein will be posi­tioned as an inno­v­a­tive and legal­ly secure loca­tion for providers in the token economy,”.

As BMCP we wel­come the effort to reg­u­late our game-chang­ing indus­try on the way to a glob­al stan­dard for tok­eniza­tion. Every finan­cial reg­u­la­tion has to start with legal cer­tain­ty and investor protection.