Token and TT Service Provider Act (TVTG)

The Token and TT Service Provider Act (TVTG) entered into force on 1 January 2020. 

As the national blockchain act, it defines the legal requirements for the provision of services on TT systems. TT systems are transaction systems based on trustworthy technologies that enable a variety of economic services. The best-known example is blockchain.

The TVTG entrusts the FMA with the registration and ad hoc supervision of certain service providers operating on TT systems. The act also implements the recommendations of the Financial Action Task Force (FATF), which call for supervision to ensure compliance with due diligence obligations for such services in the fight against money laundering and terrorist financing.

The TVTG is not part of Liechtenstein financial market law. TT service providers are therefore not classified as financial intermediaries unless they engage in other activities requiring licensing. As a result, they are not subject to European rules on licensing, registration, or supervision – except for due diligence requirements, which also apply to TT service providers subject to such obligations. Unlike traditional financial intermediaries, TT service providers are not subject to ongoing supervision by the FMA. The FMA only takes supervisory action based on the ad hoc reporting system provided for in the TVTG or upon receiving a third-party notification. Consequently, the level of client protection ensured by supervision differs from that of a licensed financial intermediary. 

In view of the entry into force of MiCAR, the TVTG has been amended several times, most recently to ensure that MiCAR and TVTG can continue to exist alongside each other while their respective areas of application remain mutually exclusive.