Liechtenstein pioneered blockchain regulation with the Token and TT Service Provider Act (TVTG). The country offers one of the most comprehensive and innovation-friendly crypto regulatory frameworks globally.

Liechtenstein implemented the Blockchain Act (TVTG) in 2020, one of the world's most comprehensive blockchain laws. The country operates under EU MiCA regulation and provides clear legal framework for token economy.

The TVTG mandates that any natural or legal person with headquarters or residence in Liechtenstein who wishes to professionally act as a TT Service Provider must register with the Financial Market Authority (FMA). The Act defines ten specific roles that require registration, including: Token Issuer, TT Key Depositary, TT Token Depositary, TT Protector, Physical Validator, TT Exchange Service Provider, TT Verifying Authority, TT Price Service Provider, and TT Identity Service Provider. The registration process involves an application fee of CHF 1,500 for the first service and CHF 700 for each additional service. Minimum capital requirements vary depending on the type and scope of the services provided. For example, the minimum share capital for a company is CHF 50,000, but for Token Issuers, the capital requirement is tiered based on the total value of tokens issued, ranging from CHF 50,000 up to CHF 250,000. All registered providers are subject to AML/CFT due diligence requirements and must demonstrate reliability and professional qualifications.

For private individuals, gains realized from the sale of cryptocurrencies are generally tax-exempt, as capital gains on private movable assets are not subject to tax in Liechtenstein. However, crypto assets are treated as property and are therefore subject to the annual wealth tax. The wealth tax rate is progressive and varies by municipality, typically ranging from 0% to 0.89%. The taxable wealth is calculated by multiplying the market value of the crypto assets by a standard interest rate of 4% to determine a notional income, which is then subject to the ordinary income tax. For businesses and professional traders, profits from crypto trading are considered business income and are subject to the flat corporate income tax rate of 12.5%. There is no Value Added Tax (VAT) on the exchange of fiat currency for crypto assets. Regarding reporting, Liechtenstein is actively implementing the OECD's Crypto-Asset Reporting Framework (CARF), which will introduce new due diligence and reporting obligations for crypto service providers to the Tax Administration.

Banking access for crypto businesses in Liechtenstein is highly favorable, distinguishing the country as a pioneer in "blockchain banking." The forward-looking regulatory environment created by the TVTG has encouraged established financial institutions to embrace the digital asset sector. Several banks are explicitly crypto-friendly and offer specialized services tailored for TT Service Providers and other blockchain companies. Notable examples include Bank Frick and Sygnum Bank, the latter being a regulated digital asset bank. These institutions provide essential services such as regulated access to crypto assets, crypto exchange bundles, and robust banking infrastructure, making it relatively straightforward for registered TT Service Providers to secure necessary bank accounts and financial services.

https://www.fma-li.li/