Liechtenstein legalizes the use of tokens in economic and financial activities

The Liechtenstein Parliament passed the Blockchain Law this week, designed to stimulate the further development of new financial technologies and increase the effectiveness of the so-called “tokenomics” – an economy based on cryptocurrency tokens.

According to Coin-Ratgeber , the preparation of the bill took three years, and after its adoption in the second reading, the document was sent for signature to the Prince of Liechtenstein. According to the publication, the bill was adopted unanimously by parliamentarians.

One of the key points of the new law was the creation of the so-called “Token Container Model” (TCM), combining transactions using tokens with civil law. In its framework, tokens are considered as containers displaying various rights – from real assets like real estate and shares (security tokens) to licenses or digital codes.

The purpose of the adoption of the Blockchain Law is the creation of regulatory certainty for users and service providers, the creation of trust in order to increase the efficiency of processes, as well as the development of guidelines for service providers, including compliance with the requirements of the anti-money laundering legislation.

Note that despite its tiny size and small population, Liechtenstein has long had a reputation for business-friendly jurisdiction, especially in the field of financial services. In this alpine country are the headquarters of a number of banks, financial and investment companies, trusts, law firms and auditors.

One of the factors that attract entrepreneurs to the Principality is an adequate taxation system: personal annual income of up to € 90,000 is taxed at 5%, the highest rate is 8% with annual income of over € 180,000. The tax for companies is at 12.5%.

Liechtenstein is also probably the only state in the world with a negative unemployment rate – in 2017, 38 600 people were officially employed here with a population of 38 114 people.

The country is closely connected with Switzerland and is part of the European Economic Area (EEA), which attracts many blockchain and crypto startups here . For example, Aeternity is based in Liechtenstein.

Recall that in 2018, Union Bank AG based in Liechtenstein announced the launch of its own security tokens, thus becoming the first licensed financial institution in the world to issue blockchain assets.

Since February 2019, the post offices of the Principality began selling bitcoins .

Subscribe to BlockchainJournal news on Facebook !