BAKU – At the Chain Reaction 2024 forum, Angelika Layr, the deputy director of Liechtenstein’s Office of Financial Market Innovation, emphasized the importance of establishing a robust foundational framework for the successful integration of blockchain and digital assets.
According to Trend News Agency, during a panel titled “Innovation as Culture,” Layr outlined the strategic steps taken by Liechtenstein to foster an environment conducive to digital innovation. She stressed that the first step in this process involved crafting precise regulations that provide clarity without stifling market innovation. “Our challenge is to create such a ‘field’. We have to prepare the ground so that players can play freely on this ‘field’. This is exactly what we did in Liechtenstein when it comes to blockchain and digital assets in general,” Layr explained.
The Liechtenstein government’s approach involved the passage of a law on blockchain and a law on trusted service providers in 2020, which laid down a legal framework that assures legal certainty for all stakeholders involved. Layr highlighted the importance of these regulations as a boon for the market, provided they are well-balanced and not overly burdensome.
Further detailing the support system in place, Layr mentioned that the Office of Financial Market Innovation and Digitalization, which reports directly to the Prime Minister, serves as the primary contact for startups and innovative companies. This setup allows the government to provide necessary support promptly and effectively. “This means we can provide you with the support you need. This is the second element of our innovation structure,” she added.
The third element involves the role of the Financial Markets Supervisory Authority, which acts as an arbiter once the market dynamics begin to unfold. The establishment of a ‘regulatory sandbox’ allows experts to engage closely with new technologies and understand the specific needs of the industry, facilitating more informed and practical regulatory practices.
Lastly, Layr spoke about creating legal structures like the Liechtenstein Venture Cooperative, designed to embed innovation within an institutional framework. These measures, according to Layr, are crucial for governments that wish to promote and manage innovation effectively. “It is very important to have a dialog with the community, to get in touch to better understand new technologies,” she concluded, stressing the need for continuous engagement with both public and private sectors to foster a thriving environment for digital asset innovation.