Government Of Liechtenstein Passes New Regulations On Blockchain

A press release has been forthcoming from the government of Liechtenstein, which states that government has passed new tokenization, virtual asset service provider and blockchain regulations, as of May 7.

This new act, called Token and VT Service Providers Act, has been introduced with the mission of improving investor protection, reducing money laundering scams and formalizing the current regulations surrounding blockchain in a more comprehensive manner.

The act has not just covered blockchain, but has also left room for emerging technologies. Hence, this new act states that it will regulate “transaction systems based on trust technologies,” so as to include any potential technologies that might emerge in the future.

The declaration cites tokenized securities as well and also talks about how digital token systems can tokenize real-world assets. The government hopes that tokenization will “create new opportunities in the areas of financial services, logistics, mobility, the energy industry, industry and the media” in new token economies.

A regulatory environment which does not stifle growth, is very important for any technology to reach its full potential. The government has expressed their faith in this new act, in ensuring that any risks or scams can be strictly penalized, without halting the development of the token economy in the country.

Many other countries have lately been focusing on their technology related regulations, to make way for greater technological advancement in the country. Countries like Switzerland and Liechtenstein have witnessed a continuos rise in the number of blockchain-related firms in their regions.

It is important that all other countries follow suit, and ensure an adequate regulatory environment in their respective nations, for the growth of emerging technologies.