Future of Finance


The Liechtenstein law that is actualizing the dream of the token economy

The Liechtenstein law that is actualizing the dream of the token economy

Liechtenstein was the first jurisdiction in the world to pass a comprehensive law on tokenization.  When the Token and Trustworthy Technology Service Provider Act (TVTG) became law on 1 January 2020, it became possible for issuers to tokenize any asset that exists in the physical world – from real estate, through precious metals and collectibles, to securities such as equities and bonds – with the comfort of legal certainty. 

Dr Thomas Dünser, director of the office of financial innovation of the Government of Liechtenstein and a member of the Supervisory Board of the BFG Blockchain Founders Group in the principality, told Dominic Hobson how intermediaries, issuers and investors are using the law to make a reality of the coming “token economy.”

Questions that are being asked

  • Liechtenstein has had blockchain law (TVTG) since January 2020. What use has been made of it so far? 
  • EU law is helpful to the TVTG at present (e. g. EU law insist on retaining a CSD) but tokenisation platforms in other jurisdictions have accepted that limitation and it will in any event change, at least for crypto-assets, in 2024 when a new EU law comes into effect. Why not act now to get ahead of the competition?
  • As a member of the EEA, Liechtenstein can already passport tokenised services into the EU, so being a tokenisation centre now could lead to rapid growth. Is that not another argument for acting more aggressively now?