Many countries have taken up the challenge of regulating Token emissions. Liechtenstein became a pioneer in 2018 when launching their Token and Trustworthy Technology (TT) Service Provider Act (“TVTG”) that they have since adapted and improved and that provided legal certainty for existing rights that are tokenized.

Liechtenstein has adapted an innovative model to regulate all types of Tokens (Container Token Model). The model is based on two elements – a container as described in the technology-neutral token definition and the specific content. However, when it comes to the rights represented by the Token, a specific law may apply: If a security is represented in a token, security laws apply. If a financial instrument is represented in a token, financial market laws may apply, and so on.

Companies active in the field of FinTech and Blockchain may require a license, registration and/or be subject to a basic information sheet requirement.

a) Registration

Providers of TT Services must register with the FMA before commercially offering their services in Liechtenstein and are then entered in the public register. Exempted from this obligation are only token issuers, who issue tokens in their own name and not professionally to third parties if the tokens issued are worth less than 5 million over 12 months. Other services to third parties require a registration even if the tokens issued are worth less than 5 million over 12 months.

The service providers must fulfil the following criteria in order to be entered into the register:

• Legal capacity
• Reliability
• Professional qualification
• Residence in Liechtenstein
• Minimum Capital
• Appropriate organizational structure
• Internal procedures and control mechanisms
• License requirements, e. g. fiduciary, banking and financial

Further reporting requirements apply.

b) Basic information sheet

Token issuers must publish information before the emission and notify the FMA of the emission unless exceptions apply. The issuer is liable for missing, false or incomplete information.
The basic information sheet must include:

• Information on the token and the corresponding rights
• VT System
• Purpose and nature of the underlying legal transaction
• Conditions of acquisition and transfer of Tokens
• Risks
• Summary of the above

Further information requirements may apply.