LIECHTENSTEIN Law and Practice Contributed by: Matthias Niedermüller, Alexander Milionis and Fabian Rischka, Niedermüller Attorneys-at-Law
Act ( Token- und Vertrauenswürdige Technolo - gien-Dienstleister-Gesetz , or TVTG), introduced in January 2020, Liechtenstein was the first country to have a comprehensive regulation on services related to crypto-assets. On the one hand, the law regulates civil law issues in rela - tion to client protection and asset protection. On the other hand, supervision of the various ser - vice providers in the token economy was estab - lished. In addition, there are measures to combat money laundering by making service providers subject to AML/CFT rules. Furthermore, the law provides clarity on classifications of digital secu - rities. The TVTG also served as a role model for the Markets in Crypto-Assets Regulation (MiCAR), which provides for the comprehensive regulation of digital assets at EU level. Legal Treatment of Crypto-Assets Liechtenstein law does not have any restrictions on owning and using cryptocurrencies for trans - actions. Also, exchange between fiat currencies and cryptocurrencies is permitted. Even official authorities accept payments in some cryptocur - rencies and the registered capital for formation of entities may be provided in cryptocurrencies.
To achieve coherent and consistent legislation, the law also stipulates that Liechtenstein law applies to any token issued by a Liechtenstein issuer or any token that the issuer opted for. Also, according to the national TVTG, all tokens issued under Liechtenstein law are consid - ered to be assets located in Liechtenstein and thus enjoy the protection of Liechtenstein laws In the course of one of the latest amendments of the Liechtenstein Criminal Procedure Code, the national legislator introduced virtual assets as assets that also can be made subject to a freezing order directing the transfer of the virtual assets to a wallet kept by the police to secure them for confiscation (forfeiture). This possibil - ity is not limited to specific offences but, rath - er, applies in general. Therefore, virtual assets obtained by fraud can also be made the subject matter of confiscation. (including property law). Freezing Crypto-Assets
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