Cryptocurrencies might have got a bad rap lately, but Blockchain, the technology behind it hasn’t. In fact, it’s experiencing the exact opposite and is viewed in many circles as an innovative technology that holds promising opportunities to help businesses and society as a whole.
In line with this, the Liechtenstein government wanted to be in the driver’s seat of the Blockchain revolution. Reports said that the European country is currently developing comprehensive Blockchain legislation that will create an environment where Blockchain technology can thrive.
It’s reported that the government wants to regulate Blockchain, but in a way that’s conducive to innovation. Liechtenstein isn’t the first country to have such regulations. However, Adrian Hasler, the Prime Minister of the country, said that their upcoming bill is the first of its kind.
He said that it would encompass a larger scope than other countries have. The country is aggressively pursuing the adoption of Blockchain technology in hopes of using it to improve the various processes of the government.
Hasler said that the law would regulate all Blockchain-related activities with the aim of helping the public and private sectors adopt the technology. However, he added that the law isn’t just about the added support for cryptocurrencies and ICOs, but about all practical applications of the technology as well.
Reports said that the upcoming law would provide the needed legal framework to enable new Blockchain-powered business models. The Blockchain Act, as the bill is named, will serve as a light-handed regulatory framework that will help speed up Blockchain adoption in the country.
The Prime Minister further explained that the law they are currently developing wouldn’t be similar to that of China’s, which they refer to as too “excessive” and strict. He pointed out that Blockchain regulations should support Blockchain innovation, and not stop its development and adoption.
He said that if this was the case, then the Blockchain economy won’t benefit the government. No country wanted that, he added. He continued by saying that their regulatory approach is all about supporting Blockchain adoption, and it won’t dive into areas where government intervention is not necessary.
Hasler further added that the government had reviewed the regulatory frameworks of other countries, as well as asked the advice of various financial institutions and tech companies regarding the matter.
He stated that the Liechtenstein government wanted to make the bill as relevant as possible so that the people will benefit from it. The bill might be implemented this summer, but there’s still no conclusive evidence that it’s going to be the case.
As of now, multinational corporations are already diving into Blockchain technology – IBM, Porsche, and Audi, being some examples.
In addition, Hasler said that the interest of Liechtenstein in Blockchain technology isn’t new. In fact, the regulatory framework currently being developed is the outcome of a careful analysis of the opportunities and risks of the Blockchain, an undertaking which started more than a year ago.
Hasler said in a statement to Coindesk that the government discovered that they could maximize the full potential of Blockchain technology by incorporating it in the government and private sectors.
The prime minister added that the Blockchain could greatly improve the economy of the country. He even called the Blockchain Act as a state innovation, implying that the government fully supports further development of the technology.
It isn’t the first time that the small European country that is home to 40,000 made it to the crypto headlines. Just recently, Crown Prince Alois Philipp Maria showed his support for Blockchain as he said that his family is willing to invest $5 billion in cryptocurrencies.
However, he also said that they are still a bit hesitant because of their price volatility. Bank Frick, one of the biggest banks in Liechtenstein, also announced that their clients can now invest directly in cryptocurrencies. The reason, they said, was due to the growing demand of digital coins in Europe.