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?