As a member of the European Economic Area (EEA) but not the EU, Liechtenstein is not subject to many regulations promulgated by the EU.
According to the Fact Sheet on Virtual Currencies sent out by the Financial Market Authority of Liechtenstein, as of now, neither the production nor the use of virtual currencies as means of payment are subject to any licensing requirement governed by specialized legislation. Anti-money laundering and anti-terrorist financing laws may apply to digital currency companies in Liechtenstein, but this determination is done on a case-by-case basis by the Financial Market Authority (FMA) Liechtenstein. (Source)
In March 2018, a Liechtenstein Bank announced that it would allow clients to directly invest in cryptocurrency accounts. (Source). In response to Liechtenstein’s crypto-friendly stance, in August 2018 Binance and Liechtenstein Cryptoassets Exchange (LCX) announced the launch of a fiat-to-crypto exchange. The new trading platform will be located in Liechtenstein and offer trading between Swiss Francs (CHF) and euros (EUR) against major digital currencies pairs, subsequently adding more trading pairs following regulatory approvals. (Source).
Liechtenstein is a small state of 40,000 people and does not have a large body of unique laws regarding finance or business. Many laws in Liechtenstein are adapted from other European laws. Crypto laws in Liechtenstein are expected to be a lot more liberal than those in EU countries. The Liechtenstein FMA gave the green light in March 2018 three times to cryptocurrency funds. (Source).
In late September 2017, Liechtenstein published a ‘Fact Sheet on ICOs’, which stated that “depending on their specification, tokens may constitute financial instruments subject to financial market law. This may include tokens that have characteristics of equity securities or other investments. In principle, activities relating to financial instruments are subject to licensing by the Financial Market Authority (FMA) on the basis of special legislation and may require publication of a prospectus. In all cases, the specific design and de facto function of the tokens are decisive.“ (Source). In reality, there is no regulation on token sales in Liechtenstein yet. Liechtenstein’s Prime Minister proposed in a speech in Mar 2018 to not only regulate the tax, spending, and issuance of digital currency and also to create advantageous conditions for new fintech businesses, so it is recommended to keep an eye out on upcoming legislation. (Source).
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