Self-custodial wallet / non-custodial software in Liechtenstein
Publisher of software where users hold their own private keys. The publisher never holds, controls, or has access to user funds.
Self-custodial wallet is conditionally permitted in Liechtenstein without local incorporation, subject to AML obligations and none licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
AML Obligations
- No direct AML obligations under the Due Diligence Act (SPG) / TVTG for a publisher of self-custodial software who never holds, controls, or has access to user funds or private keys — the AML framework applies to regulated VT Service Providers (TT Key Depositors, TT Protectors, TT Custodians, Exchanges, Transfer Service Providers) which require custody or control over keys/tokens.
- If the software publisher also offers any ancillary service that involves holding private keys, acting as a TT Key Depository, or facilitating transfers on behalf of users, then AML obligations under the SPG/SPV would attach, including: customer identification and verification, UBO identification, sanctions/PEP screening, source of funds/wealth assessment, transaction monitoring, and suspicious transaction reporting to the FMA.
Key Restrictions
- The publisher must not hold, control, or have access to user private keys or funds — doing so would trigger classification as a TT Key Depository, TT Custodian, or VT Transfer Service Provider under the TVTG, requiring FMA authorization.
- The software must be non-custodial by design (users generate and control their own private keys locally).
- No promotion or facilitation of exchange, transfer, or payment services on behalf of users — that would risk classification as a VT Exchange Service Provider or VT Transfer Service Provider.
- Consumer-protection / disclosure obligations under general Liechtenstein law (product liability, software licensing) may still apply, but no specific crypto-asset disclosure regime under the TVTG applies to pure software publishers without custody.
Key Risks
- Regulatory boundary risk: If the software includes integrated exchange/swap features (e.g., in-wallet token swaps routed through third-party APIs), the FMA may view the publisher as facilitating exchange services, potentially triggering TVTG classification.
- Enforcement exposure: FMA regularly issues public warnings and cease-and-desist orders against unauthorized entities (li.licensing.issuing-public-warnings-against-unauthorized, li.licensing.issuing-cease-and-desist-orders) — mistaken classification could lead to enforcement action.
- MiCA transition risk: Liechtenstein will implement MiCA as an EEA member (li.custody.mica-implementation-mica-is-a), which may create new obligations for wallet software providers even without custody — this is an evolving area.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Token and VT Service Provider Act (TVTG) / Blockchain Act:
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.
VT Key Depository: A person who holds private keys for clients or is responsible for their storage.
VT Protector: A person who holds VT Tokens in its own name for the account of a third party (client).
VT Payment Service Provider: The TVTG explicitly defines a "VT Payment Service Provider" as a person who provides payment services involving VT tokens or virtual currencies.
VT Transfer Service Provider: A person who facilitates the transfer of VT Tokens on behalf of a third party. This can also encompass aspects of payment processing.
Token Custodians: Safely keep tokens or private keys for others.
TT Key Depositors: Keep private keys for TT systems.
TT Protectors: Hold tokens in their own name on behalf of third parties.
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."
Definition: As reiterated from Art. 4(1)(e) TVTG: "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."
Due Diligence Act (DDA) (Sorgfaltspflichtgesetz):
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.
Issuing public warnings against unauthorized entities.
Issuing cease-and-desist orders.
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:
- medium
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a publisher of purely self-custodial wallet software (no custody of keys or funds, no exchange/transfer facilitation) does not trigger TVTG classification as a VT Service Provider and faces no licensing or AML obligations under Liechtenstein law, but must remain strictly non-custodial to avoid FMA authorization requirements.
Questions this verdict aims to answer
- Does software publishing trigger VASP / MSB classification?
- Do AML obligations attach when no custody exists?
- What disclosure or consumer-protection rules apply?