Country overview

#38

Liechtenstein

Country stats

Rating Points

213

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

160

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

1 500

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Legally allowed

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Safe place

The overall level of security in a given country based on open data.

Crypto Salaries

No info

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Medium

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Basic

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Cryptofund

This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.

ICO/STO

This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.

Good

Medium

Bad

intro

Some reviews say Liechtenstein is called Alpine Malta. It has a complicated crypto regulation framework compared with Switzerland and Malta. At the same time, this country has unique regulations different from other EU countries based on the “Token container model.”

Security level

Liechtenstein is qualified as a safe place according to our rating. Homicide level (1) is 5,1 per 100,000 inhabitants a year.

Crypto Payments

Local Prime Minister Daniel Risch has claimed (2) that state services will be available to pay in Bitcoin. At least that means that crypto payments of goods and services by agreement are legal here.

Also, according to Blockpit (3), FMA defines virtual currencies as “digital monetary units, which can be exchanged for legal tender, used to purchase goods or services or to preserve value and thus assume the function of legal tender.”

Crypto Salaries

We need to find out about the legal status of crypto salaries in Liechtenstein.

Legal

Legal 500 (4) states this is “an attractive jurisdiction for medium- and large-scale blockchain infrastructure projects.”

As subjecting service providers to the Anti-Money Laundering(4¹) (AML) and Countering the Financing of Terrorism regulations is another way to prevent financial crime, the bill further clarifies the situation concerning digital securities(4²). In this context, this article will discuss the Liechtenstein Blockchain Act and the status of cryptocurrency in Liechtenstein.

Liechtenstein is the first nation to specifically regulate the token economy by passing the Token and Trustworthy Technology Service Providers Act (also known as the Blockchain Act or the Liechtenstein Blockchain Act).

So, Liechtenstein Blockchain ACT (5) legally defines all types of tokens and crypto assets.

Financial Market Authority Liechtenstein (FMA) regulates all financial market participants in the country and is the main crypto regulator. Banks and payment services operating with crypto may also need other types of FMA licenses. The term “TT services” in local regulations defines VAPSs.

According to Legal 500 (6), there are the following types of crypto entities in Liechtenstein:

Token generator (technical issuer of tokens)

Token issuer (legal issuer of tickets)

Private keys custodian

Token custodian

Physical validator (between token and tokenized assets)

Protector (holding tickets in his name for account of third parties)

Exchange office operator (token exchange for fiat)

Verifying authority (checking the ability to conclude the deal and the preconditions to sell tokens)

Price service provider

Identity service provider (identifying the authorized person of the token and making a registry).

Based on Cointelegraph overview (7), a token can also represent payment tokens, utility tokens, security tokens, music rights, patents, utility coins, software rights, etc.

Quote

The foundation of the Liechtenstein Blockchain Act is the Token Container Model, in which a token functions as a container that can hold any right. A right that represents a real asset, such as stocks, bonds, real estate, commodities, or fiat money, can be "loaded" into the container. The container could, however, be empty, for instance, the digital code of the Bitcoin blockchain.

Liechtenstein’s AML policy is available in the Council of Europe guide (8). The list of registered TT services is published on the FMA website (9).

Taxation

Tax name	Index
PIT tax Max	24
PIT tax Min	3
Corporate tax (CIT)	12.5
Max Individual CGT (for crypto)	22.4
Min Individual CGT (for crypto)	0
Wealth tax Max	4
Wealth tax Min	0

PIT

According to PWC(9¹), PIT in Liechtenstein has a 22,4% flat rate.

According to Grin.de (9²), crypto taxation in Liechtenstein has many everyday moments with Switzerland.

CGT

Based on The Banks (10), CGT rates differ from 3% to 24%.

CIT

According to PWC (11), CIT in Liechtenstein has a 12,5% flat rate and may be reduced to 8%.

There is a 4% (12) Wealth tax for property in Liechtenstein, but it doesn’t imply crypto since crypto in this jurisdiction isn’t qualified as a property.

Links

1)List of countries by intentional homicide rate

2)Liechtenstein’s Government Plans to Accept Bitcoin for Payments. Article

3)Taxes on cryptocurrencies like Bitcoin in Liechtenstein? Article

4 and 6)Liechtenstein: Blockchain. This country-specific Q&A overviews Blockchain laws and regulations applicable in Liechtenstein.

4¹)AML and KYC: A catalyst for mainstream crypto adoption

4²)Why do we need cryptocurrencies?

5)Liechtenstein Blockchain ACT

7)An overview of the Liechtenstein Blockchain Act. Article

8)Anti-money laundering and counterterrorist financing measures. Liechtenstein. Fifth Round Mutual Evaluation Report. May 2022. PDF-file

9)FMA-Register

9¹)Overview. PWC

9²)How does taxation in Liechtenstein, Switzerland, Germany, UK, Australia and US look like for the cryptocurrency Bitcoin

10)Economy and Banking Sector of Liechtenstein

11)Liechtenstein. Corporate - Taxes on corporate income. PWC

12)Liechtenstein. Individual - Other taxes. PWC

Articles

article

Latin America: Crypto Regulation Review and Recent Updates

This publication provides an overview of crypto regulation trends in Latin America in 2022-2023

article

How Much Did Hamster Kombat Earn and Why Are Users Unhappy?

Some hypothesis about issues of Hamster Kombat drop and its possible earnings.

article

Brazil: Hot Spot for Nomads and Biggest Fintech Market in LatAm

Brazil is a big economy with low legal barriers for crypto companies and here it's why.

intro

Security level

Liechtenstein is qualified as a safe place according to our rating. Homicide level (1) is 5,1 per 100,000 inhabitants a year.

Crypto Payments

Local Prime Minister Daniel Risch has claimed (2) that state services will be available to pay in Bitcoin. At least that means that crypto payments of goods and services by agreement are legal here.

Crypto Salaries

We need to find out about the legal status of crypto salaries in Liechtenstein.

Legal

Legal 500 (4) states this is “an attractive jurisdiction for medium- and large-scale blockchain infrastructure projects.”

So, Liechtenstein Blockchain ACT (5) legally defines all types of tokens and crypto assets.

According to Legal 500 (6), there are the following types of crypto entities in Liechtenstein:

Token generator (technical issuer of tokens)

Token issuer (legal issuer of tickets)

Private keys custodian

Token custodian

Physical validator (between token and tokenized assets)

Protector (holding tickets in his name for account of third parties)

Exchange office operator (token exchange for fiat)

Verifying authority (checking the ability to conclude the deal and the preconditions to sell tokens)

Price service provider

Identity service provider (identifying the authorized person of the token and making a registry).

Based on Cointelegraph overview (7), a token can also represent payment tokens, utility tokens, security tokens, music rights, patents, utility coins, software rights, etc.

Quote

Liechtenstein’s AML policy is available in the Council of Europe guide (8). The list of registered TT services is published on the FMA website (9).

Taxation

Tax name	Index
PIT tax Max	24
PIT tax Min	3
Corporate tax (CIT)	12.5
Max Individual CGT (for crypto)	22.4
Min Individual CGT (for crypto)	0
Wealth tax Max	4
Wealth tax Min	0

PIT

According to PWC(9¹), PIT in Liechtenstein has a 22,4% flat rate.

According to Grin.de (9²), crypto taxation in Liechtenstein has many everyday moments with Switzerland.

CGT

Based on The Banks (10), CGT rates differ from 3% to 24%.

CIT

According to PWC (11), CIT in Liechtenstein has a 12,5% flat rate and may be reduced to 8%.

There is a 4% (12) Wealth tax for property in Liechtenstein, but it doesn’t imply crypto since crypto in this jurisdiction isn’t qualified as a property.

Links

1)List of countries by intentional homicide rate

2)Liechtenstein’s Government Plans to Accept Bitcoin for Payments. Article

3)Taxes on cryptocurrencies like Bitcoin in Liechtenstein? Article

4 and 6)Liechtenstein: Blockchain. This country-specific Q&A overviews Blockchain laws and regulations applicable in Liechtenstein.

4¹)AML and KYC: A catalyst for mainstream crypto adoption

4²)Why do we need cryptocurrencies?

5)Liechtenstein Blockchain ACT

7)An overview of the Liechtenstein Blockchain Act. Article

8)Anti-money laundering and counterterrorist financing measures. Liechtenstein. Fifth Round Mutual Evaluation Report. May 2022. PDF-file

9)FMA-Register

9¹)Overview. PWC

9²)How does taxation in Liechtenstein, Switzerland, Germany, UK, Australia and US look like for the cryptocurrency Bitcoin

10)Economy and Banking Sector of Liechtenstein

11)Liechtenstein. Corporate - Taxes on corporate income. PWC

12)Liechtenstein. Individual - Other taxes. PWC