The TVTG (Token and VT Service Providers Act), also known as the Blockchain Act, is Liechtenstein’s comprehensive legal framework governing blockchain and token-based services. Enacted on January 1, 2020, the TVTG positions Liechtenstein as a global leader in the regulation of digital assets and blockchain technology.
The law provides legal certainty for the token economy by defining key terms, establishing regulatory requirements, and setting standards for compliance. It aims to foster innovation while ensuring investor protection and adherence to international financial regulations.
Key Features of the TVTG
- Token Definition: The TVTG introduces a comprehensive definition of tokens as containers for rights, enabling the tokenization of assets, rights, and claims.
- VT Systems: The law defines "Trustworthy Technology (VT) Systems" to encompass blockchain and other decentralized technologies used for token transactions.
- Service Provider Regulation: Entities offering services related to tokens, such as issuance, storage, transfer, and exchange, are subject to regulatory oversight.
- FMA Supervision: The Financial Market Authority (FMA) of Liechtenstein is responsible for supervising compliance with the TVTG.
- Compliance Requirements: The law mandates adherence to anti-money laundering (AML) and know-your-customer (KYC) regulations.
Objectives of the TVTG
- Legal Clarity: Establish a clear legal framework for the token economy.
- Investor Protection: Safeguard investors through transparency and accountability.
- Innovation Promotion: Encourage the development of blockchain technologies and services.
- International Compliance: Align with global financial regulations and standards.
Who Is Affected?
The TVTG applies to individuals and entities operating within Liechtenstein that engage in activities involving tokens and VT systems. This includes, but is not limited to:
- Token issuers (e.g., ICOs, STOs)
- Wallet and custody service providers
- Exchange and trading platforms
- Advisors and consultants in the token economy
These parties must comply with the registration and regulatory requirements set forth by the FMA under the TVTG.
Official Resources
For the official text of the TVTG and further information, please refer to the Financial Market Authority (FMA) of Liechtenstein's website: TVTG – Token and VT Service Providers Act.
Floin Insight
As a regulated Virtual Asset Service Provider (VASP) under the TVTG, Floin operates in full compliance with Liechtenstein's blockchain legislation. This ensures that our services meet the highest standards of legal certainty, investor protection, and regulatory compliance.
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