Companies worldwide have noticed the legal changes that came with the Blockchain Act. UK-based Smartlands is the next platform to launch its projects in Liechtenstein.
Liechtenstein’s Blockchain Act is showing results. UK-based financing platform Smartlands has decided to base future projects in Liechtenstein because of “the possibilities the Liechtenstein Blockchain Act presents to investors and issuers.” Attracting more businesses to Liechtenstein was one of the goals the government was aiming for with the new legislation – and it works.
Smartland is seeking legal certainty for its investors
Smartlands is a UK-based security token platform that facilitates the tokenization of real-world economic assets.
In 2019, the platform completed several projects. It successfully tokenized shares of a student residence in Nottingham, UK. The platform also joined the European Crowdfunding Network (ECN) to contribute to the development of security token infrastructure in Europe. Most recently, Smartlands announced the tokenization of the Disruptive Technology Fund, aiming to raise a total of €8 million. The company says it has already received “promising offers” from several investment funds who want to integrate blockchain technology.
In early 2020, the company said it wanted to align itself “primarily with the interests of high net-worth individuals, family offices, and institutional investors.” Liechtenstein and its regulatory framework thus makes a perfect base for Smartlands’ new ventures.
Smartlands CEO Ilia Obraztsov says, “We remain believers in crowdfunding but dwelling on our past successes is not in Smartlands’ book. We’re excited about the possibilities the Liechtenstein Blockchain Act presents to investors and issuers in regards to direct tokenization of any asset using blockchain tokens as containers for any assets.”
The Blockchain Act amends Liechtenstein’s existing law to allow for rights and assets to be tokenized. For companies like Smartland, who actively work with investors, legal certainty is key to success. “Armed with cutting-edge legislation for investment funds, the Liechtenstein jurisdiction is ideal for structuring basically any financial product on blockchain there may be,” says Obraztsov.
Smartlands plans to use Liechtensteins SICAV fund structure
Smartlands will base future projects on the new Liechtenstein law. It plans to make use of Liechtenstein’s SICAV, an open-ended fund structure that is a Public Limited Company (PLC) with variable capital. Investors can purchase shares in the PLC to participate in the fund.
Obraztsov explains, “Liechtenstein SICAVs are industry standard and one of the most popular types of funds in the EU. SICAVs can be used as umbrella funds for multiple sub-funds. Such a structure provides an efficient and fast way to introduce new investment ideas and opportunities on blockchain in one of the most prestigious fund jurisdictions. It is possible to tokenize any assets with a dedicated sub-fund.”
Smartland is not the first company making the move to Liechtenstein because of the Blockchain Act. In fact, for most blockchain businesses in Liechtenstein progressive legislation was one reason to set up shop. Other reasons are Liechtenstein’s EEA membership, providing access to the Europen market, and efficient government agencies facilitating the build-up of technological innovation. Liechtenstein has many advantages compared to other jurisdictions, the Blockchain Act is just one piece of the puzzle.