07 Oct 2019 Joseph Chanov
Liechtenstein Approves New Blockchain Act; EU Is Under Pressure
One of Europe’s smallest countries – Liechtenstein, had voted in favor of cryptocurrencies, which caused a chaos in EU countries. The Act on Tokens and Entities Providing Services Based on Trusted Technologies (TVTG) was accepted unanimously by the Liechtenstein’s parliament.
The Blockchain Act aims to mitigate money laundering, improve security, and provide transparency. The new legislation is expected to take effect on 1st January 2020, making Liechtenstein one of the best-regulated governments.
The Act explains the mechanisms of Token Containers. The Token Container Module (TCM) resembles the general framework requirement for using tokens. In the new legislation, token containers can hold anything from rights to shares, licensing, or real estate ownership. The token transaction between parties is also fully regulated, thus – creating a secure and transparent mechanism.
“Virtually, any asset or right can be tokenized without regulatory complaints. This holistic approach is unique in Europe,”, a press release states.
The Blockchain Act puts pressure on other EU countries, such as Germany, as Liechtenstein is a member of the European Economic Area (EEA). Being an EEA member means Liechtenstein could become a more desirable investment place than Switzerland, which isn’t a part of the EEA.
Germany is also pursuing regulatory framework approval, so Liechtenstein’s Blockchain Act could serve as a foundation. The regulation framework also means that investors with security concerns may prefer to invest in regulated countries.
Thomas Nägele, one of the creators of the Act, outlined that “TVTG puts Liechtenstein as a law-compliant and secure location for the modern token economy.”
Despite the legislation not being triggered, crypto companies have are already started moving their headquarters in Liechtenstein. Bittrex, for example, announced that their Bittrex Global trading platform will be fully-operational from Liechtenstein very soon.Blockchain Cryptocurrency Regulations Cryptocurrency Blockchain Development Blockchain Gaming Security Government