Yesterday, the second part of the ‘Blockchain meets Liechtenstein’ series took place at the University of Liechtenstein. This event’s main topic were the legal questions of the new Blockchain Act and the token economy. For that, many well-accomplished speakers held their speeches on the issue. Especially the matter of the different regulations outside of Liechtenstein compared to Liechtenstein, token-creation and VT Systems were further elaborated. The Blockchain Act will inure 2019.
List of speakers:
- Dr. Nicolas Raschauer, Prorektor für Forschung Propter Homines Lehrstuhl für Bank- und Finanzmarktrecht, Institut für Wirtschaftsrecht, Universität Liechtenstein, Vaduz
- Demelza Kelso Hays, MSc Wissenschaftliche Mitarbeiterin / Doktorandin Lehrstuhl für Finance, Universität Liechtenstein, Vaduz
- Günther Dobrauz-Saldapenna, Partner & Leader PwC Legal Switzerland, Zürich
- Thomas Nägele Rechtsanwalt, Managing Partner, NÄGELE Rechtsanwälte GmbH, Vaduz
- Dr. Nicolas Raschauer Universität Liechtenstein, Vaduz
- Rainer Silbernagl Wissenschaftlicher Projektmitarbeiter Propter Homines Lehrstuhl für Bank- und Finanzmarktrecht, Institut für Wirtschaftsrecht, Universität Liechtenstein, Vaduz
- Prof. PD Mag. Dr. Simon Laimer, LL.M. Institut für Zivilrecht der Universität Innsbruck, Innsbruck und Univ.-Ass. Mag. Lukas Gottardis Institut für Zivilrecht der Universität Innsbruck, Innsbruck
- Dr. Thomas Stern, MBA Finanzmarktaufsicht Liechtenstein, Vaduz
- Bianca Lins Wissenschaftliche Mitarbeiterin Propter Homines Lehrstuhl für Bank- und Finanzmarktrecht, Institut für Wirtschaftsrecht, Universität Liechtenstein, Vaduz
- iur. Angelika Layr, BSc, LL.M Wissenschaftliche Mitarbeiterin Lehrstuhl für Gesellschafts-, Stiftungs- und Trustrecht, Universität Liechtenstein, Vaduz
Difficulties of bigger countries regulating digital assets
At the beginning of the event Demelza Hays (Uni FL) talked about the regulation of digital assets outside of Liechtenstein, focusing on the US, Gibraltar and Malta. She concluded her speech with the irregulations of especially the US financial services. Because depending on in which state you have your company, you are legally compliant. The American system is based on the Howey Test whether or not the token can be used. In addition, Demelza explained that even if you do not raise your ICO in America, as the risks are too high, problems can arise. For example, if an American citizen buys your token secondarily, you still are at risk of going to jail next time you set foot in the US for not being compliant with the SEC, even though you do not have your ICO there.
In addition, Dr. Günther Dobrauz-Saldapenna took the US system into consideration when talking about the cross-border relationships with token. He said that it is especially difficult for big countries to have a general regulation and that small countries are far in advantage establishing new technologies.
Do’s and Don’ts of generating tokens
The second big topic at the event were the Do’s and Don’t’s of generating tokens. Mag. Thomas Nägele explained that there are several things that must be considered before generating a token. It is less complicated to put more effort into the generating of tokens at the beginning, than generating them and having to change everything once the tokens are established. For example, the whole process already starts with the seemingly easy question: “Is a Blockchain necessary for this project?”. With this question, funnily enough though, most entrepreneurs fail to answer. Also, Blockchain companies need to have a thorough idea about their business plan and must describe everything in the whitepaper. And last, but not least, it is crucial for early entrepreneurs to tax the tokens correctly, otherwise penalties are imminent.
Registering at the FMA
It is also increasingly significant for Blockchain companies to be registered at the FMA (Finanzmarktaufsicht) to show their seriousness in the business. And even though the Blockchain prides itself for being unregulated, many people are calling for some form of regulations. That is just the niche the FMA is capitalising.
The new Blockchain Act will define the regulations of different service providers more thoroughly. But it can be said already, that six service providers must be registered at the FMA and three service providers can choose to be registered at their own will. Those service providers who can voluntarily register are token generators, VT-testing centres and VT-price service providers.
VTs and VT-Act
VT is short for ‚Vertrauenswürdige Technologie‘, aka trustworthy technologies. Mmag. Dr. Thomas Stern explains the VT as such: “These trustworthy technologies ensure the integrity of tokens, their unambiguous assignment to the holder of the power of disposal and their disposal without an operator”. The VT-Act can determine any kind of token-form, as mentioned by Dr. Rainer Silbernagl. There have to be some requirements first, though, such as an obligatory imprint, basic and specific information and a summary of the project.
Other topics were also discussed at the event, such as the difference and similarities between crowdfunding and ICOs, the directive of tokens and the overlap to the financial market law.
To conclude, many questions about the Blockchain Act, regulations outside of Liechtenstein and token generating have been answered and discussed. However, many more questions will be asked as the introduction of the Blockchain Act draws closer. The whole world awaits the new law and Liechtenstein will be known as the first-mover.
–>Check out the next events. HERE