REGULATIONS

Crypto Travel Rule Regulations in

Liechtenstein

by

the Financial Market Authority (FMA)

🇱🇮
Travel Rule required from
Travel Rule regulation still pending
April 1, 2022
Content last updated
January 9, 2023

Liechtenstein had a comprehensive legal framework for the crypto industry since 1 January 2020, with the entry into force of the Blockchain Act (TVTG). With the amendments to the Due Diligence Act (or SPG) and the Due Diligence Ordinance (or SPV), Liechtenstein created the basis for the application of FATF's crypto travel rule and subsequently provided further guidance to the industry through Instructions that entered into force in August 2021.

1. Is cryptocurrency legal in Liechtenstein?

Yes, owning and using cryptocurrency for transactions is legal in Liechtenstein. In fact, Liechtenstein Blockchain Act (TVTG) provides a comprehensive framework on the nature of crypto assets and related services.

2. Are there any AML crypto regulations in Liechtenstein?

Yes. In Liechtenstein, crypto anti-money laundering (AML) obligations are governed by the Due Diligence Act (SPG) and the Due Diligence Ordinance (SPV).

3. Is the Crypto Travel Rule mandated in Liechtenstein?

Yes, the crypto Travel Rule is mandated in Liechtenstein. The implementation of the FATF travel rule in Liechtenstein was implemented through amendments to the Due Diligence Act, or SPG (dated 1 April 2021) and to the Due Diligence Ordinance, or SPV (in force since 1 June 2021).

4. Who regulates cryptocurrency in Liechtenstein?

In Liechtenstein, the Financial Market Authority (FMA) is the entity responsible for supervising financial market participants, including in the crypto industry, and issuing the legal and regulatory foundations for the space.

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FATF Travel Rule requirements in Liechtenstein

1. Are there licensing or registration requirements for VASPs in Liechtenstein?

VASPs (or TT Service Providers) in Liechtenstein are subject to the registration requirements foreseen in Art.12 et seq. of the TVTG. The TVTG (Art.19 / 2) sets forth a deadline of three months for the FMA to decide on a complete application for registration as a TT Service Provider.

2. When does the Crypto Travel Rule go into effect in Liechtenstein?

The Crypto Travel Rule is already in effect in Liechtenstein. However, Liechtenstein foresees a grace period for compliance with the travel rule when transactions involve VASPs subject to jurisdictions that do not yet require full implementation of FATF's travel rule. The grace period ends on 1 April 2022, for transactions with VASPs in EU/EEA or equivalent third countries and on 31 December 2021, for transactions with VASPs in any other jurisdiction.

3. Does Liechtenstein permit a grace period to comply with the Crypto Travel Rule?

Compliance with the travel rule is mandatory for any VA transfers with counterparties that are subject to jurisdictions where full implementation of the travel rule is already required.

However, Liechtenstein foresees a grace period to comply with the travel rule for cases where the transaction involves VASPs subject to jurisdictions that do not yet require full implementation of FATF's travel rule (Chapter 10 of FMA's Instruction), until:

  • 1 April 2022, for counterparty VASPs in the EU/EEA or equivalent third countries (listed in FMA Instruction 2018/7)  or
  • 31 December 2021, for counterparty VASP in any other jurisdiction

These transactions are subject to enhanced due diligence and risk mitigation measures.

Complying with the FATF Crypto Travel Rule in Liechtenstein

1. What is the minimum threshold that triggers the Crypto Travel Rule in Liechtenstein?

The minimum threshold for the Crypto Travel Rule in Liechtenstein is 1 franc (CHF) (Art. 23b, SPV).

2. What personally identifiable information is required to be shared for the Crypto Travel Rule in Liechtenstein?

To comply with the crypto Travel Rule in Liechtenstein, VASPs must share the following information:

PII on the Originator Customer:

  • Name;
  • Account number (wallet address);

And one of the following:

  • Physical address;
  • ID document number;
  • Customer identification number
  • Date of birth and place of birth.

PII on the Beneficiary Customer:

  • Name;
  • Account number (wallet address) (Art. 23b /1, SPV).

3. Are there differences in customer PII requirements for cross-border transfers versus transfers within Liechtenstein?

No. In Liechtenstein the PII that needs to be exchanged in the context of the travel rule is the same for cross-border and internal transfers.

4. What are the non-custodial or self-hosted wallet requirements in Liechtenstein?

In principle, in Liechtenstein, the travel rule does not apply to VASPs' interactions with non-custodial or self-hosted wallets. However, in such cases, VASPs are required to apply enhanced due diligence measures.

The travel rule only applies to VASPs in Liechtenstein when their counterparty is also a VASP  (FMA's Instruction, Chapter 2). The TVTG lists the activities that trigger qualification as a TT Service Provider (Art.2 /1/k, TVTG). Non-custodial or self-hosted wallet services are not included in said list. However, it should be assessed whether the non-custodial service provider carries out any other activity that might be covered.

Why choose Notabene for Crypto Travel Rule Compliance in Liechtenstein?

Notabene provides software, tools, and comprehensive data that helps businesses implement the new requirements of the FATF guidelines including the Travel Rule. Our end-to-end Travel Rule solution is tailored to the compliance needs of our clients across jurisdictions, including Liechtenstein. We provide methods to perform proof of ownership verification when interacting with non-custodial wallets as well as a VASP directory with verified information that helps our clients smoothly identify their counterparty VASPs.

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