LIECHTENSTEIN Law and Practice Contributed by: Christian Inmann and Markus Stelzl, Inmann Stelzl & Partner Attorneys at Law Partnership
9. Regtech 9.1 Regulation of Regtech Providers
and asset tokenisation, particularly of securities, funds and other real-world assets, taking advantage of the TVTG’s legal certainty for tokenised rights. Implementation in Liechtenstein is typically gradual and pilot-driven to test interoperability and opera - tional feasibility. Regulatory compliance is central: blockchain solutions must meet MiFID II, AML/CFT obligations, and MiCAR alignment, while leveraging Liechtenstein’s legal framework (such as the TVTG) to ensure that tokenised assets are recognised under civil and supervisory law. Traditional players generally combine innovation with a cautious, compliance-first approach, using block - chain to improve operational processes without com - promising legal or supervisory obligations. However, compared to other jurisdictions, traditional players in Liechtenstein were among the early adopters of mod - ern technologies, in particular the blockchain technol - ogy. 10.2 Local Regulators’ Approach to Blockchain Local regulators have taken a proactive and inno - vation‑oriented stance on blockchain, including the introduction of dedicated legislation and ongoing adaptations to align with evolving EU rules. The centrepiece of Liechtenstein’s regulatory approach remains the TVTG, also known as the Block - chain Act. This law has been in force since 1 Janu - ary 2020 and was designed to provide legal certainty for blockchain‑based services and the broader token economy by defining legal principles for tokens and regulating service providers. It requires these service providers to register with the FMA and meet minimum standards, including AML due diligence, client protec - tion measures and reporting obligations. Beyond the TVTG, Liechtenstein has also adapted its regulatory framework in response to the EU’s MiCAR. Liechtenstein implemented MiCAR domes - tically through the EEA MiCAR Implementation Act (EWR‑MiCA‑DG), effective from February 2025. CASPs conducting activities that fall within MiCAR’s scope must now hold a MiCAR authorisation. After the transitional period ending on 31 June 2026, MiCAR
In Liechtenstein, regtech providers are generally not regulated solely for offering regulatory technology, such as compliance software, monitoring tools or reporting platforms. Regulation depends on the nature of the services they provide and whether they engage in activities that fall within the scope of financial ser - vices regulation. If a regtech firm merely supplies software or analyt - ics (SaaS) to banks, insurers or investment firms, it remains unregulated, but the client remains fully responsible for compliance. However, if a regtech provider performs regulated services on behalf of clients, it may itself fall under MiFID II, MiCAR, PSD2 or other applicable regimes, and must be authorised accordingly. 9.2 Contractual Terms to Ensure Performance and Accuracy Financial services firms typically enter into strict agreements with technology providers to ensure system performance, accuracy and reliability. These often cover service levels and uptime guarantees, data integrity and accuracy obligations, testing and change-management procedures, audit rights, liability and remediation clauses, and cybersecurity require - ments. These provisions are partly industry custom, but also shaped by regulatory expectations (if applica - ble) under MiFID II, DORA and MiCAR, which require firms to maintain resilient, auditable and accurate sys - tems, leading firms to flow these obligations down to their technology providers. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry In Liechtenstein, traditional financial players such as banks, insurers and fund managers are exploring blockchain primarily to enhance efficiency, transpar - ency and security, while fully aligning with financial market regulation, MiCAR and the TVTG. Key areas of focus include crypto-asset services under MiCAR
501 CHAMBERS.COM
Powered by FlippingBook