As the regulation of cryptocurrency business continues to toughen, FMA Liechtenstein issues new batch of crypto licenses, within the new regulatory framework TVTG, frequently referred to as the Blockchain Act. SMART VALOR, the Swiss-based exchange has been approved by FMA for providing services such as custody and exchange for cryptocurrencies and digital assets.
SMART VALOR opened its doors to customers in July 2019 and has been the first crypto exchange established under the Liechtenstein jurisdiction. The new TVTG (Token- und VT-Dienstleister-Gesetz) law was approved by parliament at the end of 2019 and came into force on the 1st of January 2020. The year 2020 was a transitionary period for existing businesses to register under TVTG. SMART VALOR worked with FMA throughout the year to achieve the approval as a custodian and an exchange.
“We are incredibly pleased to see that we have built and operate an exchange infrastructure which satisfies the high standards of financial regulation such as in Liechtenstein. During the last year, we had an opportunity to finetune our internal control mechanisms and AML compliance. We also strengthened our corporate governance and established a professional board,” said Olga Feldmeier board chair of SMART VALOR. The new regulation defines ten new categories of blockchain service providers, such as custodian, exchange, physical validator, token issuer and more. It is also notable in respect to alignment with international regulatory standards as it implements the FATF recommendations, which provide for supervision under the Due Diligence Act for such services. TVTG regulatory framework represents one of the most advanced regulatory frameworks in Europe.
Equipped with the FMA license for custodial exchange, SMART VALOR is opening a new chapter in its strategic roadmap embracing institutional business. Already during the first quarter this year, SMART VALOR is rolling out institutional offering for independent asset managers, family offices and small banks, which will include brokerage, trading and custody of cryptocurrency and digital assets. “We are perfectly positioned here as we are currently the only one truly local custodial digital asset exchange, which not only operates in accordance with local regulatory requirements but also speaks the customers’ language.” – said Olga Feldmeier.
For this new regulatory framework FMA has created a new TVTG register: fmaregister.fma-li.li