Being the sixth smallest country in the world, Liechtenstein is considered one of Europe’s blockchain hubs next to Zug and Malta. The country has earned an international reputation for creating a supporting blockchain ecosystem and hosts a large portion of Europe’s blockchain industry and many private banks.

Liechtenstein’s economy

Liechtenstein is part of the European Economic Area (EEA), but not a member of the European Union. Furthermore, Liechtenstein also enjoys a Customs and Currency Treaty with Switzerland. This means, companies based here have easy access to the European market, but do neither have to report to EU government bodies nor comply with all EU regulations.

Nevertheless, most EU financial market regulations still apply to EEA members states. Hence, Liechtenstein’s financial institutions have to comply with almost the same legal requirements and standards as any financial institution established in a member state of the European Union. This adds to Liechtenstein’s trustworthiness and it makes it easier to connect with European markets. Just recently, Liechtenstein was taken off the EU list of “Grey States” of tax havens, showing that Liechtenstein complies with most relevant EU regulations.

Liechtenstein is generally viewed as a business-friendly nation. It has an AAA rating from Standard and Poor’s and an outstanding reputation of a well-respected and serious place for doing business.

Liechtenstein‘s Token and TT Service Provider Act (TVTG)

Since last year, Liechtenstein has been working on a draft for a blockchain law, which will come into effect next year. That blockchain law, also called TVTG or Token and TT Service Provider Act, creates a legal certainty for a token economy. This is appealing inasmuch, as a lack of regulation opens the door for fraud and misuse of the blockchain technology. Liechtenstein works closely together with the FMA (Regulatory Laboratory) and the government to create a crypto-friendly environment and try to help companies to set up shop in the country. Liechtenstein’s Blockchain Act therefore aims at creating legal certainty. If that works as intended, blockchain could move into the mainstream.

Already today, an entire blockchain ecosystem is emerging. Specialized law firms, consultants, and other third-party providers have moved to Liechtenstein. Just recentlyLiechtenstein received the “2018 Blockchain Ecosystem of the Year” award at the Crypto Challenge Forum in London.

Liechtenstein’s Blockchain Ecosystem

Liechtenstein has established many different ecosystems working together. Here a few examples:

  • Finance: Bank Frick, Union Bank, …
  • Law: Nägele Rechtsanwälte, Niedermüller Rechtsanwälte, …
  • Taxes: Actus AG, …
  • Institutions: University of Liechtenstein, …
  • Regulator: FMA
  • Contact Center: House of Blockchain, …
  • Exchanges: Area21Invest, LCX, Light47 Exchange, …
  • Blockchain and Crypto Solution Providers: Aeternity, TenX, Weeve, Light47, …
  • Events: Technopark, Fintech.li, Blockchain Meetup Liechtenstein, …
  • Memberships: CCA, ITCC
  • Supporters: ICO.li, Ganten Group, …

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