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Security Token Offering
In Liechtenstein, the token has been legally defined by the
Token and TT Service Provider Act (TVTG). According to the TVTG, a
token is information on a TT system (blockchain) that (i) can
represent, for example, claim or membership rights and (ii) is
assigned to one or more TT identifiers (address). Based on this
definition, the principle of “substance over
form” has been codified. In other words, a token does not
change the underlying right. A security token is therefore a
financial instrument, such as a transferable security, issued in
tokenized form.
Like any public offering of (non-tokenized) transferable
securities, an STO may, therefore, in principle only be made if the
issuer and/or offeror have previously published an approved
securities prospectus that has been approved by the competent
supervisory authority – in Liechtenstein, the Financial Market
Authority Liechtenstein (FMA) – unless an exemption applies.
Prospectus
The prospectus shall contain, in particular, information about
the issuer and about the transferable security (security token) to
be offered. The aim of the securities prospectus is to provide
potential investors with sufficient information (such as about the
assets and liabilities, financial position, profits and losses,
future prospects of the issuer and the rights and risks associated
with these securities) to enable them to make an informed
investment decision. The securities prospectus therefore forms the
basis for prospectus liability..
Scope of review by the FMA
The FMA only examines the prospectus for completeness, coherence
(absence of contradictions) and comprehensibility. The FMA does not
verify the accuracy of the information contained in a prospectus,
in particular warranted characteristics (e.g. security of the
investment fund, high…
