Remote VASP serving residents in Liechtenstein
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote VASP is conditionally permitted in Liechtenstein with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- Registration with the FMA as a VT Service Provider under the TVTG (Token and VT Service Provider Act) is mandatory for any entity providing exchange, custody, transfer, or other VT services to residents
- Identification and verification of all customers (natural persons: passport/ID; legal entities: registration documents, directors, UBOs) and proof of address
- Screening of customers and UBOs against national and international sanction lists (UN, EU, OFAC) and PEP lists
- Ongoing monitoring of business relationships and transactions to ensure consistency with customer/risk profile
- Source of Funds (SoF) and Source of Wealth (SoW) documentation for higher-risk relationships or significant transactions
- Reporting obligations under the Due Diligence Act (SPG/SPV), which governs AML/CFT for all regulated entities including VT Service Providers
- Compliance with FMA guidelines on AML/CFT for TT (Trustworthy Technology) Service Providers
- Minimum capital requirement of CHF 100,000 for TT Service Providers under Art. 17 TVTG
Key Restrictions
- A local entity licensed by the FMA is required — there is no exemption for foreign-incorporated entities serving residents cross-border without establishment
- Must obtain prior FMA authorization as a TT Service Provider under the TVTG before offering services to Liechtenstein residents
- The operator must have a physical organizational structure in Liechtenstein with 'fit and proper' management, robust internal controls, IT security, and risk management systems
- Custody services require separate classification as a TT Custodian with additional duty-of-care obligations under Art. 23 TVTG
- MiCA implementation (by December 30, 2024) will further harmonize requirements as Liechtenstein is an EEA member
Key Risks
- FMA actively issues public warnings and cease-and-desist orders against unauthorized cross-border operators — enforcement is ongoing and regular
- FMA has the authority to impose supervisory measures, withdraw/refuse licenses, and demand cessation of operations for non-compliance
- Operating without a license exposes the entity to public naming by the FMA on its warnings page, reputational damage, and potential legal liability
- Regulatory ambiguity around the exact boundary between VT Exchange, VT Transfer, and VT Payment Service Provider definitions could lead to mis-categorization
- MiCA implementation adds transitional uncertainty as Liechtenstein's national TVTG regime will need to adapt to the EU regulatory framework
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
FMA Information on TVTG: https://www.fma-li.li/en/regulatory-sections/token-and-vt-service-provider-act-tvtg/
Definition under TVTG: A "VT Exchange Service Provider" is a person who facilitates the exchange of VT Tokens against fiat currencies or other VT Tokens. This covers traditional cryptocurrency exchanges.
Requirement: Registration with the FMA as a VT Exchange Service Provider is mandatory.
Token and VT Service Provider Act (TVTG) / Blockchain Act:
Due Diligence Act (DDA) (Sorgfaltspflichtgesetz):
Regulator Name: Financial Market Authority (FMA) Liechtenstein
Issuing public warnings against unauthorized entities.
Issuing cease-and-desist orders.
Imposing supervisory measures leading to remediation.
Withdrawing or refusing licenses for non-compliance.
Identification and Verification of the Customer and UBO:
Screening: Customers and their UBOs must be screened against national and international sanction lists (e.g., UN, EU, OFAC) and politically exposed persons (PEP) lists.
Understanding the Purpose and Intended Nature of the Business Relationship:
Source of Funds (SoF) / Source of Wealth (SoW):
VASPs must continuously monitor the business relationship, including transactions, to ensure that the activities are consistent with their knowledge of the customer, their business, and risk profile.
Law on Professional Due Diligence for the Prevention of Money Laundering, Organised Crime and Terrorist Financing (Due Diligence Act, Sorgfaltspflichtgesetz - SPG): This is the overarching AML/CFT law that sets out the due diligence obligations for all financial intermediaries, including VASPs.
FMA Guidelines: The Financial Market Authority (FMA) Liechtenstein issues various guidelines and circulars to provide practical guidance on the implementation of AML/CFT obligations, including specific guidance for TT Service Providers.
Exchanges: Provide services for the exchange of virtual assets against fiat currency or other virtual assets.
Transfer Service Providers: Perform virtual asset transfers.
Definition of TT Custodian: According to Art. 4 para. 1 lit. e TVTG, a TT Custodian is "a service provider who holds tokens in custody for third parties and provides services for the safeguarding of private keys or other means of access to tokens."
Licensing Process: Any entity wishing to act as a TT Custodian must obtain prior authorization from the FMA. The requirements for obtaining a license as a TT Service Provider are outlined in Articles 12-17 of the TVTG and include:
Minimum Capital Requirements: As per Art. 17 TVTG, TT Service Providers, including TT Custodians, must have a minimum capital of CHF 100,000. The FMA may require higher capital based on the scope and risk of the services provided.
FMA Authorization: A TT Custodian is "qualified" by virtue of having obtained the necessary authorization from the FMA. This licensing process ensures that the entity meets the rigorous standards set out in the TVTG regarding capital, management, organization, and operational integrity.
Entity Targeted: Various companies identified for unauthorized operation, often involving crypto/token offerings. (Specific company names are usually listed on the FMA's warning page, which is regularly updated). Violation Type: Operating financial services or token services without the necessary license under the TVTG or other relevant financial market laws, often coupled with allegations of scams or misleading information. Penalty Amount: Not a direct monetary fine imposed by the FMA in this context, but rather a public warning and expectation of cessation of activity. Failure to comply can lead to further legal action. Outcome: Public notification of unauthorized activity, demand for cessation of operations in Liechtenstein, consumer protection.
Outcome: Public notification of unauthorized activity, demand for cessation of operations in Liechtenstein, consumer protection.
Outcome: Withdrawal of authorization, cessation of regulated activities, safeguarding market integrity.
MiCA Implementation: MiCA is a comprehensive EU regulation for crypto-assets that will become fully applicable in phases, with most provisions for crypto-asset service providers (CASPs) applying from December 30, 2024.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a remote VASP cannot serve Liechtenstein residents from abroad without first obtaining FMA authorization as a TT Service Provider under the TVTG (Blockchain Act), which requires a local licensed entity, minimum CHF 100,000 capital, and full AML/CFT compliance under the Due Diligence Act (SPG/SPV); the FMA actively issues warnings and cease-and-desist orders against unauthorized cross-border operators.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?