Liechtenstein Tightens Fintech Compliance Regulations
Compliance with Stricter EU Standards
In an effort to prevent money laundering and terrorist financing, Liechtenstein has implemented strict fintech compliance regulations for financial institutions and service providers operating in the country. The Due Diligence Act (SPG) has widened its scope to include various categories of entities that offer token-related services.
Entities Subject to Anti-Money Laundering Requirements
The following entities are now subject to anti-money laundering requirements under the SPG:
- Token issuers: Required to register
- TT depositaries: Must comply with the act’s provisions
- TT exchange service providers: Required to register or license
- Token lending undertakings: Subject to registration and licensing requirements
- TT trading platform operators: Must comply with EU regulations
- TT crypto-asset managers: Required to register or license
- TT transfer service providers: Must comply with the act’s provisions
- TT agents subject to registration: If they provide or distribute token services for the aforementioned entities
Broader Scope of Compliance
Traders in goods are now required to comply with the DDA even when accepting virtual currencies or tokens worth CHF 10,000 as payment for their goods.
Support from Liechtenstein’s Financial Market Authority (FMA)
The FMA supports and accompanies fintech companies during the licensing process but is unable to offer general legal advice or evaluate business models in terms of market readiness or risk. Fintech companies are urged to submit a subordination inquiry if they are unsure about their regulatory status.
Commitment to Combating Money Laundering and Terrorist Financing
With the tightening of EU regulations, Liechtenstein is poised to maintain its commitment to combating money laundering and terrorist financing while fostering innovation in the financial sector.