Crypto as share capital: Liechtenstein provides much needed general guideline

Amazing Blocks is proud that the government of Liechtenstein is at the forefront of the token economy by providing a general guideline for incorporation, capital increase, and subsequent liberation with crypto assets. Establishing an entity solely with crypto assets had already been possible before, however, this marks another step forward toward becoming a true hub for blockchain. Especially in times where holding crypto in your treasury increasingly becomes popular, Liechtenstein is once again inheriting a pioneer role amongst regulators. — Author: Nicolas Weber

Share capital in crypto

Liechtenstein: A true pioneer

At Amazing Blocks, we utilized this opportunity with Ether as an initial capital contribution. With the general guideline, the legislature in Liechtenstein provides, any pioneer can now leverage the benefits of this with regulatory clarity. This paves the way for a far more dynamic future of entity governance in general. Templates for e.g. the initial capital contribution with crypto are provided to clients and partners of Amazing Blocks. Our gratitude to the supportive Liechtenstein regulators! A snapshot of the guidelines can be seen in Figure 1 below, the actual guidelines can be sent by an employee of Amazing Blocks upon request!

Figure 1: General guideline excerpt for establishing entity with crypto assets (Source: Government of Liechtenstein)

Future outlook

Remarks

Amazing Blocks offers a tokenization solution that enables its clients to tokenize various assets according to the Liechtenstein Token Act (software-as-a-service). The software covers both the issuance of tokens and investing in tokens. It suits the needs for tokenizing all kinds of assets (e.g. machines, cash flow generating contracts, trademarks, real estate, cars). Imagine that some asset should be tokenized. For this asset, various tokens would make sense: Equity tokens, debt tokens, participation rights as tokens, ownership tokens, or any mixture of these tokens. The software of Amazing Blocks helps issuers to handle multiple assets and to issue multiple tokens for these assets. This is possible by integrating blockchain technology with the law (that is, the Liechtenstein Token Act). At the core, there is the “digital legal entity in Liechtenstein” based on “tokenized shares” which allows a very efficient foundation, a very efficient operation of the company, and, thus, an efficient and flexible possibility to tokenize assets. This should now make a wide variety of tokenization projects possible because the costs for tokenization are significantly reduced.

Interested? Then, contact us! Are you interested in what Amazing Blocks is doing? Visit our website, write an email to hi@amazing-blocks.io, or follow us on LinkedIn or Twitter. Or provide your email address here and we will immediately send you more information.

Author

Nicolas Weber is Head of Business Development at Amazing Blocks and is your direct contact for any regards. You can contact him via email or connect with him on LinkedIn.

Digital legal entities in Liechtenstein based on true equity tokens to tokenize any asset in a standardized way to save time and money. - www.amazingblocks.io