- Payments in crypto will be exchanged for Swiss francs immediately
- Liechtenstein is in the EEA, to which legal framework MiCA is relevant
Bitcoin will be among the payment options for services provided by the government of Liechtenstein, German media source Handelsblatt reported, cited by CoinDesk.
According to Prime Minister and Finance Minister Daniel Risch, payments in crypto will be exchanged for Swiss francs immediately. The Swiss franc has been Liechtenstein’s national currency since 1920.
EU finalizes MiCA
The European Union is putting the final touches on the Markets in Crypto Assets (MiCA), its landmark regulatory framework. Liechtenstein is a member of the greater European Economic Area (EEA), to which MiCA is relevant.
It’s not clear when Bitcoin will be added as a payment option. Risch told Bloomberg that crypto was still be risky, but that could change. Still, it’s too volatile to entrust any of the country’s annual savings to it, which are quite substantial.
Crypto is getting more popular in Liechtenstein
Liechtenstein has taken a proactive approach to embracing cryptocurrencies and blockchain technology. The country has created a favorable regulatory environment and has implemented various measures to attract crypto-related businesses and startups.
Clear laws and regulations
Back in 2020, Liechtenstein adopted the Token and Trusted Technology Service Providers Act (TVTG), which provides a clear legal framework for token issuers and service providers.
There is also the Liechtenstein Blockchain Act, which provides a legal framework for the transfer of rights using blockchain technology and smart contracts.
The Liechtenstein Financial Market Authority (FMA) oversees the regulation and supervision of crypto-related activities in the country, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements.
An attractive destination for crypto businesses
The favorable regulatory environment and clear legal framework have attracted several crypto businesses to Liechtenstein. The country has seen the emergence of cryptocurrency exchanges, blockchain startups, and other crypto-related service providers.
Liechtenstein’s proximity to Switzerland, a global hub for crypto and blockchain, also contributes to its popularity in the crypto industry. The country’s strategic location and supportive regulatory environment have positioned it as an attractive destination for crypto enthusiasts and businesses alike.
