22 January 2020

The Blockchain Act: new business for the entire sector3 min read

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The Blockchain Act sees Europe’s most comprehensive blockchain regulation come into effect in Liechtenstein. The Blockchain Act creates far-reaching legal certainty for the still fledgling blockchain industry and therefore plays a key role in its professionalisation. Bank Frick benefits from this development and is able to further consolidate its role as the leading blockchain bank.

As a leading bank in the field of regulated blockchain banking, Bank Frick welcomes the new Blockchain Act which has been in force since the start of the year. Liechtenstein has created Europe’s most comprehensive blockchain regulation, thereby underscoring its pioneering role in the token economy.

This positions Liechtenstein as the optimum anchor point for the blockchain industry and the burgeoning token economy. Not only does the Blockchain Act offer groundbreaking framework conditions and legal certainty, it also contributes significantly to the further professionalisation of the sector, thereby increasing trust in this new market.

Steady advances

Even before the adoption of these groundbreaking framework conditions, Bank Frick had already gained considerable expertise in blockchain banking. As a licensed universal bank, Bank Frick has applied the same strict legal standards as those used in classic banking transactions from the outset. A decisive factor here was not to look at the topic in isolation, but to build up the relevant expertise in all the critical departments: in Business Development, Client Support, Trading and – very importantly – Compliance. That’s why Bank Frick employs business and compliance specialists with proven banking and crypto experience.

In compliance with strict legal requirements, Bank Frick set up so-called cold storage for Bitcoin and Ethereum a number of years ago. The first regulated alternative investment fund (AIF) with crypto investments was approved in 2018. And, at the end of 2019, the Financial Market Authority (FMA) Liechtenstein approved the first fully regulated AIF in Europe, which enabled the issue of tokenised fund units – a huge step for Bank Frick, but above all for the blockchain sector as a whole.

Ideal framework conditions

Liechtenstein’s comprehensive legal framework conditions in the blockchain sector offer established companies, start-ups, investors and crypto exchanges the opportunity to boost their blockchain business in a secure regulatory environment. These framework conditions as well as the consulting and regulatory expertise offered by blockchain expert Bank Frick create the ideal basis for the successful implementation of business ideas and participation in the burgeoning token economy.

The Blockchain Act offers opportunities for new business

The new Blockchain Act offers ample opportunities for new business – particularly for classic stakeholders which, as of yet, are not familiar with blockchain technology and its advantages or still showing a hesitance to implement blockchain-based products. Asset managers, for instance, are now able to issue their own products in token form. For this, all they require to do is to undergo certification as a token issuer by the FMA. Bank Frick has a wealth of experience in this field and would be happy to provide its expertise.

With its one-stop-shop approach, Bank Frick supports the plans of intermediaries and offers trading and custodian services for crypto assets, supports token purchasing and develops tailored crypto structuring solutions. This makes Bank Frick the ideal point of contact when it comes to exploring the opportunities of the Blockchain Act and generating new business.

Author(s)

Stefan Rauti

Stefan Rauti is Head of Private Clients and external Asset Managers and Head of Blockchain Banking at Bank Frick and has worked for the Bank for almost 10 years.

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