LIECHTENSTEIN Law and Practice Contributed by: Christian Inmann and Markus Stelzl, Inmann Stelzl & Partner Attorneys at Law Partnership
• Tokenised real-world assets (RWAs) – fall under the TVTG, which provides a legal framework for issuing, transferring and holding tokenised repre - sentations of real-world assets, ensuring regula - tory clarity for fintech platforms. Depending on the structure, they may also trigger MiFID II or MiCAR obligations, requiring licensing, reporting and investor protection measures. • NFTs – are also regulated by the TVTG. 6.3 Impact of the Emergence of Cryptocurrency Exchanges The rise of cryptocurrency exchanges, both central - ised (CEXs) and decentralised (DEXs), has significantly influenced the regulatory landscape in Liechtenstein since the introduction of the TVTG in 2020. • CEXs that hold or trade crypto-assets for clients are now required to license as CASPs under MiC - AR and many were previously registered under the TVTG. They must implement AML/CFT procedures, DORA, secure custody, IT security and transparent disclosure of fees and risks. • DEXs, operating P2P without holding client funds, are currently not regulated, though platforms that control funds or provide order-matching services may fall under CASP regulations. Regulators now clearly distinguish between hosted, supervised platforms and purely decentralised pro - tocols, ensuring compliance and investor protection. 6.4 Listing Standards In Liechtenstein, listing standards depend on the type of asset and the market. • For security tokens or other financial instruments, listing must comply with MiFID II, the prospectus regulation and the Market Abuse Regulation. • For crypto-assets, listing is governed by MiCAR and, where applicable, the TVTG (eg, tokenised real-world assets and NFTs). In particular, a white paper (MiCAR) or a basis information sheet (TVTG) may be required. Beyond regulation, industry participants broadly agree on best practices for listing, including clear govern - ance frameworks, transparent pricing, anti-fraud
measures and adherence to AML/CFT rules, even if not strictly required by law. These voluntary standards help build investor confidence and market integrity. 6.5 Order Handling Rules Order handling rules apply in Liechtenstein for invest - ment services involving financial instruments, includ - ing securities and security tokens. These rules are derived from MiFID II and related FMA guidance. For crypto-assets, MiCAR does not impose identi - cal order handling obligations, but CASPs must still ensure transparency, fairness and proper disclosure when executing client orders. 6.6 Rise of Peer-to-Peer Trading Platforms The rise of P2P trading platforms has significantly affected both traditional financial institutions and fintech players in Liechtenstein. For fintechs, P2P models provide opportunities to offer direct, decen - tralised trading without holding client funds, reducing operational costs and enabling innovative business models such as crypto-asset swaps or exchanges for tokenised assets. Traditional institutions, by contrast, face pressure to adapt digital offerings or partner with P2P platforms to remain competitive. From a regulatory perspective, P2P platforms present several challenges. If the platform does not custody funds, licensing may not be required, but platforms facilitating payments, order matching or custody could trigger CASP or financial intermediary licensing under MiCAR and/or financial market laws. AML/CFT compliance, investor protection and transparency obligations remain key concerns, particularly given the decentralised and sometimes pseudonymous nature of transactions. 6.7 Rules of Payment for Order Flow As of 28 March 2024, the EU implemented a gen - eral ban on payment for order flow (PFOF) through Article 39a of MiFIR, prohibiting investment firms from receiving any fee, commission or non-monetary benefit from third parties for directing client orders to specific execution venues. In Liechtenstein, as an EEA member, these rules were expected to be transposed into national law through
498 CHAMBERS.COM
Powered by FlippingBook