Liechtenstein to get on board with Blockchain Regulations
Prime Minister conveys avoiding of excessive rules on the Blockchain
The Prime Minister of Liechtenstein conveys the country’s need to stay on board during the economic transformation through Blockchain technology. The government of Liechtenstein plans to make a sensible regulatory approach to build a legal environment encouraging growth and innovation of the Blockchain. Adrian Hasler, the Prime Minister assures that the upcoming bill of the country “goes much further than the blockchain legislation of other countries”.
Hasler explained the initial legal framework required to keep up with the Blockchain technology;
“The law is intended to regulate all activities that are possible on technical systems such as distributed ledgers and blockchain systems, and thus provide legal certainty… But the law covers much more than merely the issuing of cryptocurrencies and utility tokens. The law is intended to provide the necessary legal framework for a wide range of new services and business models relating to these technologies.”
The Bill referred to as “The Blockchain Act” will draw the structure of the appropriate and adequate legal framework. The bill will be initially notified by the Liechtenstein’s Financial Market Supervisory Authority, which has already addressed more than one hundred blockchain and digital currency-related enquiries. The prime minister went on to explain the process;
There is no point in creating regulations that are excessive and lacking in practical relevance, because then the blockchain economy will simply develop outside the regulations. That surely would not be in the interest of any country. Therefore, we want to propose a sensible regulatory approach by means of this law, where the role of the state in creating legal certainty and confidence comes into effect where it is needed.
Visible change from Liechtenstein
The government has analyzed the legislation of several countries, consulted fintech companies, lawyers as well as financial service providers. The aim is to have a bill “as relevant in practice as possible” which will be presented in summer to the public.
According to Hasler, the bill is the result of an analysis done by a group 18 months ago of “the opportunities and risks of a blockchain economy”. The prime minister went on to explain the value of Blockchain;
“It quickly became clear how the blockchain can significantly change almost all aspects of our economic life and financial services.”
Hasler also indicated the importance of The Blockchain Act for empowering ‘state innovation’;
For the Liechtenstein government, it is important that the state and the authorities are themselves in a position to develop further… The Blockchain Act stems from this process of innovation.
In March 2018, Alois, Hereditary Prince of Liechtenstein revealed considerations of the royal family to invest part of their 5 billion USD wealth in cryptocurrencies. They also believe blockchain will help improve the efficacy of the Liechtenstein government.
Also in March 2018, Liechtenstein’s Bank Frick notified the ability for customers to invest directly in digital currencies, due to such demand from European countries.