Liechtenstein Government To Support Blockchain With Light Regulation

Blockchain, News, Regulation | April 4, 2018 By:

Liechtenstein Prime Minister Adrian Hasler said that the government will introduce new legislation to regulate blockchain business models and underlying blockchain systems.

The bill, dubbed “The Blockchain Act,” will be presented to the public this summer and is drafted to create a legal environment for business models based on blockchain technology that’s conducive to innovation and light on regulation.

In an interview, Hasler explained the need for simplicity and comprehensiveness in the bill. He said there is no point in creating regulations that are excessive and lacking in practical relevance, because then the blockchain economy will simply develop outside the regulations.

Hasler added that the government has reviewed the legislation of other countries, and is also in consultation with variety of FinTech firms, financial service providers and lawyers, with the aim of making the bill “as relevant in practice as possible.”

During a speech at the Finance Forum in Vaduz late last month, Hasler acknowledged the diversity of applications for blockchain technology, saying, “It’s not just for cryptocurrencies like bitcoin, but has several other uses.” He predicted 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.

Liechtenstein, a small European country with a population of less than 40,000, 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.

Last month, Bank Frick, a Liechtenstein-based family bank, announced that it would be the “first financial institution in the country to offer the trading of five leading cryptocurrencies and secure safekeeping via offline storage.”