With its new Law on Tokens and TT Service Providers (German: Das Token- und VT-Dienstleistungsgesetz [TVGT]), otherwise known as the “Blockchain Act”, Liechtenstein has become the first country in the world to adopt a legal basis for the Token Economy. The law was promulgated two weeks ago. Prime Minister Adrian Hasler and Mauro Casellini, Board Member of the Crypto Country Association (CCA) and CEO of Bitcoin Suisse (Liechtenstein), presented the “Blockchain Act” to the public and media on Friday.
Trustworthy Technologies (TT) are aimed at guaranteeing the integrity of tokens. These tokens are data stored on a TT system that represents acceptable legal or membership claims. In terms of digital representation, they function as proof of ownership, for example for works of art, real estate or corporate shareholdings. The Token Economy facilitates the breakdown of assets among many different owners without the need for central administrative functionalities. Thanks to Blockchain technology, tokens are practically unfalsifiable, rendering a centralized authority as the basis for trust superfluous.
Mauro Casellini comments: “With the Blockchain Act, or TVTG, Liechtenstein is offering the legal basis for the Token Economy and has already received global attention with this legislation”. Profound expertise in this promising future technology is also a precondition for creating attractive jobs in Liechtenstein and securing future prosperity. It will now be important to educate and further train those responsible for enforcing this law. In the subsequent podium discussion, the participants were unanimous in their agreement that implementation of the TVTG represents a key element of the government’s financial sector strategy. The new legislation allows Liechtenstein to position itself as an innovative and legally-watertight location for companies working in the Token Economy.