Business models

Crypto Exchanges

The Liechtenstein financial market legislation does not know the term "crypto exchange". The licensing requirements for such business models must be clarified on a case-by-case basis.

In principle, the exchange of crypto currency for legal tender does not require a licence granted by the Financial Market Authority. However, such exchange offices are subject to the Liechtenstein due diligence law.

Exchange offices must be differentiated from trading platforms for cryptocurrencies. Operating the latter does generally not require a licence granted by the Financial Market Authority and is usually not subject to due diligence law.  

Payment transactions

Payment transactions are increasingly digitalized. Numerous electronic payment and transfer methods are now being offered.

Crowdfunding/Crowdinvesting

Crowdfunding is a financing model with which a person or enterprise raises money to implement a business idea from a large number of persons using a special internet platform.

Peer-to-peer lending/Crowdlending

In peer-to-peer lending and crowdlending, loans are arranged person-to-person (P2P) or between several lenders and an individual.

Social trading/Copy training

Social trading and copy trading are a form of investment in which investors follow or copy the trading strategy of other investors.

Robo-advisors/Automated financial advice

Using client profiles and market analyses as a basis, robo-advisors automatically prepare investment portfolios and investment strategies.

Cryptocurrencies

Cryptocurrencies are private, purely virtual currencies that are not subject to any control authority. In technological terms, cryptocurrencies – such as the well-known bitcoin – are usually implemented using a blockchain.

As of now, neither the production nor the use of virtual currencies as means of payment are subject to any licensing requirement governed by specialized legislation. In individual cases, however, there may be a licensing requirement depending on the specific design of the business model.

Short-term and niche insurance

The insurance industry increasingly is offering time-limited or event-related, individualized insurance policies that can be concluded using mobile technologies.

 

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