2018 has so far seen a number of countries place tight regulations on cryptocurrencies. Liechtenstein is one of the places where this isn’t happening. Located between the Swiss Alps and Austria, Liechtenstein is smaller than Brooklyn and has a population of just 40,000. The country has always been known as a tax haven and now it is becoming the same for cryptocurrencies. This is the result of a 2016 meeting between the Crown Prince of Liechtenstein and Yanislav Malahov, one of the minds behind the creation of Ethereum. According to Forbes, since Liechtenstein has opened itself up to cryptocurrencies, Malahov is now seeking to make Liechtenstein the base for his newest project, a blockchain called Aerternity.
When asked why exactly he chose Liechtenstein as a base, Malahov stated to Forbes, “They’re not putting any financial incentives in place, but they’re making it really easy to incorporate a cryptocurrency business. You can open a company without a bank account, just by using Bitcoin or Ethereum.”
Liechtenstein comes with a lot of advantages when it comes to opening up a business. The reason behind this is that despite being part of the European Economic Area, it isn’t apart of the EU. This means that business and financial services, including cryptocurrency-based ones are free of any European Regulations. Furthermore, due to Europe’s financial passporting rules cryptocurrency investors are able to trade across the border.
While banks across europe are placing a ban on cryptocurrency, banks in Liechtenstein are doing the exact opposite. They welcome any clent’s cryptocurrency investment and are even willing to offer advice concerning Initial Coin Offerings.
The acceptance is of cryptocurrency is so widespread in the little country that even the Crown Prince Alois stated that the royal family might use blockchain technology as a means of managing the daily administration of the monarchy. He even talked about the possibility of changing his family’s assets into cryptocurrency.
Given the state of Liechtenstein concerning cryptocurrency, Malahov sees a rich future in store for cryptocurrency in small European country.