LIECHTENSTEIN Law and Practice Contributed by: Christian Inmann and Markus Stelzl, Inmann Stelzl & Partner Attorneys at Law Partnership
5. Payment Processors 5.1 Payment Processors’ Use of Payment Rails Payment processors can either use existing payment rails or implement new systems, subject to regulatory compliance. Traditional payment infrastructure, such as SEPA or card networks, may be used by licensed payment institutions or e-money providers, ensuring secure, reliable and regulated transfers. Fintechs may also develop proprietary payment solu - tions or alternative rails, for example blockchain-based or tokenised systems or application programming interface (API)-based transfer platforms. However, any new infrastructure that involves handling cus - tomer funds or executing payments typically requires licensing as a payment institution or e-money provider, adherence to AML/CFT obligations, and compliance with operational and cybersecurity standards (DORA). In practice, innovation is possible, but the creation of new payment rails is carefully monitored by the FMA to ensure financial stability, consumer protection and regulatory alignment. 5.2 Regulation of Cross-Border Payments and Remittances In Liechtenstein, cross-border payments and remit - tances are regulated under the Payment Services Act (PSA), which implements PSD2, and the DDA for AML/ CFT compliance. Licensed payment service provid - ers, including fintechs, must conduct customer due diligence (KYC), monitor transactions and report sus - picious activity to the Financial Intelligence Unit (FIU). 6. Marketplaces, Exchanges and Trading Platforms 6.1 Permissible Trading Platforms A variety of marketplaces and trading platforms are permissible, each subject to different regulatory frameworks depending on the types of assets traded. • Traditional securities trading platforms (MFT/OFT) – platforms facilitating the buying and selling of financial instruments such as shares or bonds fall
under MiFID II rules. Operators must be licensed as investment firms and comply with requirements on client onboarding, best execution, transaction reporting and investor protection. • Crypto-asset platforms/CASPs – platforms offering trading, custody or exchange services for crypto- assets are regulated under MiCAR, DORA and the DDA. They must obtain a licence as a CASP from the FMA, implement AML/CFT controls, DORA compliance, ensure secure custody and disclose fees and risks to clients. • P2P or decentralised platforms – P2P platforms may operate without direct licensing if no custo - died funds or exchange services are provided. However, once the platform facilitates transactions with held client funds or offers order-matching as a service, licensing as a CASP or financial inter - mediary may be required, depending on the assets involved. • Commodity or tokenised asset platforms – plat - forms trading tokenised real-world assets or derivatives may fall under a combination of MiFID II, MiCAR and Liechtenstein TVTG, depending on whether the asset constitutes a financial instru - ment, a crypto-asset or a token. Licensing, report - ing and investor disclosure obligations apply accordingly. In practice, the scope of regulation depends on the assets traded and whether the platform handles cli - ent funds, with fintech operators needing to assess carefully which licences and compliance measures are required. 6.2 Regulation of Different Asset Classes In Liechtenstein different asset classes are subject to distinct regulatory regimes, as Liechtenstein has a regime of substance-over-form. • Security tokens – are assets classified as financial instruments under MiFID II and require compliance with securities and financial services regulation, including licensing, prospectus requirements and investor protection rules. • Crypto-assets – are regulated under MiCAR and the DDA. CASPs must obtain an authorisation from the FMA, implement AML/CFT procedures, DORA, secure custody, and disclose all fees and risks.
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