The Liechtenstein Government has adopted the Report and Motion on the creation of a Law on Tokens and Trustworthy Technology Service Providers (Token and TT Service Provider Act; TVTG), frequently referred to as the “Blockchain Act”. The law clarifies the applicable requirements for important activities on TT systems as well as open questions in the application of laws currently in force, especially in the area of due diligence, in order to ensure compliance with international standards and a comprehensive and effective fight against money laundering. The Government believes that the possibility of representing rights in tokens raises fundamental legal questions which must be clarified for the general legal certainty of users on TT systems and TT service providers. The main focus of the law is therefore on the creation of tokens and their safe custody.
To clarify how securities can be represented and transferred purely digitally, e.g. in a token on a TT system, the legal concept of “uncertificated right” is also being introduced and, simultaneously, a connection is being created between securities law and the TVTG. Uncertificated rights are dematerialised securities in which the functions of the certificate are replaced by an entry in the book-entry register.

Download the document