Liechtenstein to Avoid 'Excessive' Blockchain Regulation, Says Prime Minister
Blockchain technology is driving economic transformation, and Liechtenstein wants to be in the front seat, according to the country's prime minister.
As such, the Liechtenstein government has set out to create "sensible," comprehensive blockchain legislation to create a legal environment that's conducive to innovation and light on regulation.
While other nations have steadily introduced blockchain and cryptocurrency-related laws, Prime Minister Adrian Hasler told CoinDesk that Liechtenstein's forthcoming bill "goes much further than the blockchain legislation of other countries."
"The law is intended to regulate all activities that are possible on technical systems such as distributed ledgers and blockchain systems, and thus provide legal certainty," Hasler said. "But the law covers much more than merely the issuing of cryptocurrencies and utility tokens. The law is intended to provide the necessary legal framework for a wide range of new services and business models relating to these technologies."
Hasler indicated that the bill, dubbed "The Blockchain Act," will outline a careful, light-handed regulatory framework.
The prime minister explained:
"There is no point in creating regulations that are excessive and lacking in practical relevance, because then the blockchain economy will simply develop outside the regulations. That surely would not be in the interest of any country. Therefore we want to propose a sensible regulatory approach by means of this law, where the role of the state in creating legal certainty and confidence comes into effect where it is needed."
The bill will be primarily informed by Liechtenstein's Financial Market Supervisory Authority, which has so-far addressed over 100 blockchain and cryptocurrency-related enquiries.