Bitcoin, Blockchain and regulation – these three topics are trying to the governments of the world currently. On the front line: the Principality of Liechtenstein. With a “consultation on the Blockchain-law,” the government will have a Paper published, setting out the circumstances a bit tighter binds.
Bitcoin, Blockchain & regulation: A love triangle with the relationship status “it’s complicated”. In order to make this Ménage-à-trois of something corporate and especially legal capacity, brings the Liechtenstein a Plan on the way. This sounds at least as complicated as the legal situation is. The “consultation report of the government concerning the creation of a law on trustworthy technologies (VT) based transaction systems (Blockchain-law; VT-law; VTG and the amendment of other laws” to promote the regulation of the Blockchain, Bitcoin and the likes.
Here, the head of government Adrian Hasler is expecting a secure legal situation, especially economic growth:
“As a state we need to constantly work on our business environment, in order to secure our prosperity and attractive jobs for the next Generation. The Blockchain-the law should create legal certainty.“
The Bitcoin Ecosystem is Token Economy
To do this, there is a need for a collective term for the Bitcoin and Blockchain Ecosystem. In their official announcement, the government referred to the Ecosystem as a “Token-Economy”:
“First of all, the low costs of digital transactions and open up new opportunities, particularly in the areas of financial services, mobility, energy, industry and the media. These applications are summarized in total by the term ‘Token Economy’.”
With the upcoming Blockchain-the law and the right to security of Liechtenstein has positioned itself as a pioneer in the financial and Technology sector. Thus, the government comes to users, the legal uncertainty deters. So it is said in the report:
“The legal classification of the elements on the Blockchain-systems represents a further focus of this template. The Blockchain-law with the tokens, a new construct, the Transformation of the “real” world on the Blockchain-allow systems right to be safe, and so the full potential for application of the Token to open up the Economy. The introduction of the legal construct of the Token in the Liechtenstein law requires that the legal consequences, such as ownership, possession, and Transmission, are also legally defined.“