The Principality of Liechtenstein will present a bill on far-reaching regulation on Blockchain technology this summer.
The government of Liechtenstein will introduce new legislation to regulate Blockchain business models and underlying Blockchain systems, Prime Minister Adrian Hasler announced during a speech at the Finance Forum in Vaduz, Cointelegraph auf Deutsch reported March 28.
The bill will be presented in summer 2018 and is drafted so that business models based on Blockchain technology are integrated in a manner which provides legal and regulatory certainty for businesses and customers alike.
“The planned regulations will make us one of the first nations worldwide to regulate this topic this broadly, laying the groundwork for extensive economic applications”, said Hasler during his speech at the Finance Forum in Vaduz.
Hasler acknowledged the diversity of applications for Blockchain technology, saying, “[It’s] not just for cryptocurrencies like Bitcoin, but has several other [uses].” Other assets such as property, cars, music licenses, or securities might also be traded via Blockchain technologies in the near future. Hasler predicts that large shares of economic processes and financial services will be conducted using Blockchain trading and service systems. Governmental support for innovation is seen to be a strategic success factor.
Neither the trade of digital currencies nor their usage as a payment method are currently covered by special licensing requirements. The Financial Market Authority of Liechtenstein (FMA) has only published two brief booklets on cryptocurrencies and ICOs.
The Principality of Liechtenstein, whose alleged tax evasion schemes and anonymous deposits make it an ideal tax haven, has become a major financial hub in Europe. The small state is expected to play an important role in the fintech industry as well. Earlier this month the Liechtenstein-based credit bank Frick announced it now offers direct investments and cold storage for five cryptocurrencies.
Liechtenstein is taking inspiration from nearby Switzerland, whose canton of Zug has become known as “Crypto Valley”, attracting several fintech corporations to locate and do business in the area.