Blockchain: Implications of the Impending Token Economy

Abstract

A growing number of corporations are using blockchain technology in their daily business activities, and the technology is popular with private users as well. However, the technology entails a number of risks that ought to be identified and minimised. Money laundering is a particular issue that has been concerning compliance officials for quite some time. Liechtenstein’s new blockchain act, the ‘Tokens and TT Service Provider Act’ (TVTG), entered into effect on 1 January 2020. The present article discusses transaction systems based on trustworthy technologies (TT Systems) (Government of Liechtenstein 2019: 6) and the developing token economy with regard to potential compliance risks, the TVTG and the amendment to the Liechtenstein Due Diligence Act. In addition, it illustrates how blockchain technology and the token economy could in the near future influence and transform global markets.