Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

Start by selecting your Topic of interest below. Then choose your Regions and finally refine the exact Subjects you are seeking clarity on to view detailed analysis provided by our carefully selected internationally recognised experts.

4. Results: Answers
FinTech
2.
Fintech market
2.1
Which sub-sectors of the fintech industry have become most embedded in your jurisdiction?
Liechtenstein

Answer ... The blockchain and cryptocurrency sector is the most embedded fintech sub-sector within the principality. This is apparent from the efforts made in drafting the Tokens and Trusted Technologies Service Provider Law (TTTL), as well as the fact that most of the inquiries submitted to the FMA’s fintech department relate to blockchain and crypto.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
2.2
What products and services are offered?
Liechtenstein

Answer ... A wide range of products and services is provided, including blockchain-based platforms serving a utility function, issuance of security tokens on blockchain-based platforms and exchange service providers.

With regard to exchange service providers, some fintech players seek to operate strict utility or crypto-to-crypto exchange services, while others seek a licence that would allow for the secondary market trading of security tokens.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
2.3
How are fintech players generally structured?
Liechtenstein

Answer ... The most typical form of incorporation is a company limited by shares (AG), although the option of incorporation as a limited liability company (GmbH) or a form of incorporation unique to Liechtenstein known as the (private law) establishment (Anstalt) is also available.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
2.4
How are they generally financed?
Liechtenstein

Answer ... Financing of fintech companies varies on a case-by-case basis. For example, some companies carry out a token offering as a means to fund the build-out of a platform; whereas others already have a proven business model and are looking to expand into the fintech space.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
2.5
How are they positioned within the broader financial services landscape?
Liechtenstein

Answer ... Until the TTTL is enacted, some fintech companies will remain unregulated; while others have business models that require specific licences under the existing financial services regime. Therefore, some companies deliberately seek to ensure that their business model is unregulated; whereas others are actively applying for financial service provider licences, which would allow them to conduct a broader range of activities.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
2.6
Do start-ups generally outsource back office functions and is there a developed market for them to access? What are the legal implications of outsourcing?
Liechtenstein

Answer ... Outsourcing of back office functions is permitted. The legal implications of outsourcing back office functions in the fintech space correspond to those in the traditional business world and industry.

For more information about this answer please contact: Thomas Nägele from NAGELE Attorneys at Law LLC
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Topic
FinTech