Description

On 1 January 2020, the Token and Trusted Technology Service Provider Act (Token- und VT-Dienstleistergesetz; TTTA) which had been passed by the Liechtenstein Parliament three months prior, came into force, alongside necessary amendments to existing laws, e.g. the Due Diligence Act. The TTTA’s core concept is the so-called “Token Container Model”, according to which a token is a container for representing a specific right, and can essentially represent any right, such as property, a right to use a specific object, intellectual property rights, etc. The primary goal is to provide and ensure legal certainty for the legal character of tokens and for token-based transactions. The most important challenge in drafting the TTTA lies in solving the incompatibility of transferring ownership regarding a token with Liechtenstein property law, as well as the proper regulation on reverse transactions if a token-related transaction was not or did not remain legally sound. The TTTA provides special provisions concerning the transfer of tokens and its legal effect with regard to the transfer of the right of their disposal. These provisions set aside the relevant general provisions of civil law, particularly property law. Moreover, the regulatory part provides regulation for the business activities of providers of services related to Trusted Technologies, such as the issuance of tokens, or depositary of TT Key or TT Token Depositaries. Key elements are the duty to be registered with the supervisory authority as a TT Service Provider, the duty of token issuers to draw up and publish basic information on the issued tokens, and the supervisory duties and capacities of the competent authority. It is noteworthy that the majority of TT Services are linked to duties under the due diligence legislation (KYC, anti-money laundering measures). However, the TTTA does not provide a legal basis for the regulatory traits of tokens. In line with regulatory practice, the connecting factor in that regard (e.g. whether a token represents a security that is linked to regulatory duties, e.g. a securities prospectus) is the right the token represents.

About the Speaker

Thomas Nägele is the Founder and Managing Partner of NÄGELE Attorneys at Law LLC, a law firm that has assisted over 300 crypto and blockchain related projects with gaining access to the European Single Market since its founding in December 2015. Thomas also founded and is President of the Liechtenstein Crypto Country Association, an organization focused on worldwide propagation of the country’s blockchain related innovation.

With over 10 years of experience in software coding, Thomas is able to bridge the gap between technology and law, and possesses unparalleled knowledge, as witnessed by his membership in the government workgroup drafting the Liechtenstein Blockchain Act. This Blockchain legislation has been dubbed the most comprehensive in Europe.

Thomas is a highly sought-after speaker at events across the globe, including the “Blockchain for Impact Summit” at the United Nations and the Token Summit in New York, as well as at the Stock Exchange of Thailand. He reflects this same global engagement in his scholarly efforts to foster awareness of blockchain technology, as a founding member of the thinkBLOCKtank and a member of the International Token Standardization Association. He also teaches regularly at several universities.

This webinar is part of the CBFL Future for Banking and Finance series.