Even as one of the world’s smallest countries, Liechtenstein continues to prove itself as a leader in blockchain regulation.
After implementing the Token and Trusted Technology Service Providers Act (TVTG), in 2019, the country has continued to gain attention from European and international crypto communities.
A pioneering step
The TVTG created a regulated framework for token-related services, putting Liechtenstein among the first countries globally to enact legislation specifically for the crypto and blockchain industry, and the act has been in force since the start of 2020.
Since the implementation of the TVTG, an increasing number of crypto service providers have established their businesses in Liechtenstein, drawn by the optimal conditions offered by the country.
The regulatory clarity and direct communication with the local financial market regulator, the Financial Market Authority (FMA), have also contributed to creating a crypto-friendly environment.
Although the country made strides ahead of other countries, the recently passed Markets in Crypto Assets (MiCA) regulation continues to be called into question for its compatibility with Liechtenstein’s blockchain act.
On April 27, the EU Parliament approved MiCA with 517 votes in favor and 38 against, aiming to lower the risks for consumers buying crypto assets, holding providers accountable if they lose investors’ crypto-assets.
On CNBC, Whitworth emphasized the importance of consistent implementation of regulations across the E.U. to provide operational clarity for crypto companies. Such consistency would foster innovation throughout Europe while preventing inadvertent fragmentation of the single market.
A model for registration
Dr. Thomas Dünser, the director of the Office for Financial Market Innovation and Digitalization in Liechtenstein, shares response that MiCA represents a significant milestone in the development of a unified regulatory system for Europe, and it takes cues from the TVTG, which served as a model for the legislation.
Specifically, the token container model, licensing requirements for blockchain-related services, and information requirements for public offerings, all adopted from the TVTG, are reflected in the MiCA draft.
As a result, there should be minimal modifications to existing practices in Liechtenstein once MiCA goes into effect, and both laws will be compatible with each other.
Source: https://crypto.news/liechtenstein-embraces-crypto-evolution-with-updated-digital-asset-laws/