The government of Liechtenstein announced that it has passed new token, virtual asset service provider and blockchain regulation.
The government of Liechtenstein announced that it has passed new tokenization, virtual asset service provider and blockchain regulation in a press release published on May 8.
Per the release, the new Token and VT Service Providers Act, passed on May 7, aims to improve investor protection, combat money laundering and establish clarity. The announcement also cites tokenized securities and how digital token systems can be used to tokenize real-world assets.
The new law reportedly regulates “transaction systems based on trust technologies,” instead of explicitly referring to blockchain, to make sure it will stay relevant in case a new technology emerges. The author of the release expects that tokenization will “create new opportunities in the areas of financial services, logistics, mobility, the energy industry, industry and the media” in new token economies.
Lastly, the announcement notes that the government is confident that the new regulation will create an adequate regulatory environment that counters the risks, provides regulatory clarity and facilitates the development of the token economy.
As Cointelegraph reported in mid-February, Liechtensteinische Post AG, the country’s official postal service, plans to offer cryptocurrency exchange services at their physical locations.
The number of blockchain-related firms in Switzerland and Liechtenstein has continued to rise throughout the bear market, according to a survey conducted by Switzerland-based crypto investment firm CV VC.