On October 3rd, 2019 the TVTG act was passed by the Liechtenstein Parliament. The Token and Trusted Technology Service Provider, or “Blockchain Act” means that Lichtenstein became the first country in the world to ever have laws and regulations regarding the token economy. With this law comes regulation for both client and asset protection, in addition to supervision of service providers and measures to combat money laundering schemes.
So, what is Blockchain technology after all? The Lichtenstein Embassy defines it as a “ledger that can securely record all sorts of transactions.” This is relevant because there is now the ability to record information in a way that is decentralized. Meaning, it is highly secure and difficult to copy or paste information, and transfers can be made with high certainty of security.
Why a new law? Simply put, Blockchain technology was in need of legal backing and certainty, in order for new participants to join, and develop the token economy. Lichtenstein saw the potential for Blockchain to be significant within its economy, and therefore legislated it. With its proximity to the financial sector, and the real world implications of crypto and blockchain, it became necessary to pass the Act. Additionally, the act legally classifies elements. These elements make up parts of the blockchain system, and are called “tokens.” Now, with governmental classification of these tokens, they can be integrated into real world systems and allow for the creation of an entire token economy. Additionally, there is now the allowance for more than just simple exchanges between individuals. Now, people can use blockchain to perform wide ranges of economic activities, because assets and rights can also be recorded within the chain.
With the passing of the Blockchain Act, users can feel secure knowing there is governmental backing, especially to prevent criminal activity. A legal framework has been provided, in addition to securities allowances, which are recorded through a book-entry system (which has also been approved by the Liechtenstein Parliament.) With the Act being passed, Liechtenstein has begun its legacy as a leader in Blockchain technology.
Source- http://liechtensteinusa.org/article/liechtensteins-parliament-approves-blockchain-act-unanimously