Interview: Ralf Glabischnig on the Liechtenstein Blockchain Ecosystem
With the recent opening of a co-working space in Vaduz, Liechtenstein, CV Labs is making a first step towards expanding its business and services internationally. Ralf Glabischnig, founder and board member of CV VC and co-founder of CV Labs knows why Liechtenstein plays a relevant role in the global developments of Blockchain technology.
On January 1st 2020, the Blockchain Act comes into force in Liechtenstein. Is it the worldwide crypto forerunner?
Absolutely. Liechtenstein is the first country in the world to have a clear Blockchain law. All tokenization projects pending in Liechtenstein can be neatly regulated. This creates legal certainty for startups as well as for corporates and is unique worldwide. What surprised me most of all was how quickly the Parliament passed the bill. It paid off that the Blockchain pioneers worked closely with the government and the Crypto Country Association is a strong, credible player in Liechtenstein.
Besides the regulation, what are the key assets for a blockchain company in Liechtenstein?
Liechtenstein is a small state in which companies work closely with the regulator. Since Distributed Ledger Technology (LDT) is a new technology and we are still learning, many things are happening for the first time. Liechtenstein benefits from the fact that they set up a Regulatory Lab early on, which is open-minded and looks for individual feasible solutions that always correspond to the existing law. In this respect, there is a lot of parallelism between Liechtenstein and the Canton of Zug: ecosystem, politics and regulator are in regular, close exchange with each other. Another advantage of Liechtenstein is its access to the European Economic Area (EEA). When the next big wave of Security Token Offerings (STO) comes, Liechtenstein will be in the pole position.
What are the main differences between Swiss and Liechtenstein regulation?
The big difference is that Switzerland regulates less. It adapts existing laws slightly to the new blockchain reality. That’s the same with other new technologies like Artificial Intelligence, Robotics or drones. Liechtenstein, on the other hand, has its own blockchain law that regulates the tokenisation of the economy. Both jurisdictions are technology-neutral.
If you had the to recommend a company, where to settle, Switzerland or Liechtenstein?
It depends on the business model, but I recommend both locations without hesitation. Switzerland has the larger blockchain community with around 800 blockchain-related companies. Liechtenstein is particularly suitable for those entrepreneurs who develop a blockchain-based financial product. Among the advantages are the e-money license and access to the EEA.
How would you describe the blockchain scene in Liechtenstein?
I would speak of a relationship of trust between the industry and the regulator. The number of electronic money institutions is growing. In addition, a cluster of exchanges is developing. Other important topics for Liechtenstein are electronic money, stable coins and the tokenization of assets. The new Blockchain Act should give these trends additional impetus, as it clarifies roles and responsibilities.
What is the reason that Crypto Valley Venture Capital (CV VC) opens a CV Labs in Vaduz?
For us it was clear from the beginning that the Crypto Valley encompasses both countries, Switzerland and Liechtenstein. There has always been a close and trustful exchange between Zug and Vaduz. Therefore, the opening of a CV Lab Vaduz, the first outside Switzerland, was only a logical next step. As mentioned, access to the EEA and the Blockchain Act are further advantages for us. We see great opportunities not only for the Blockchain and Fintech start-ups, but also for the traditional finance and insurance industries. Liechtenstein is on the right track in this respect, from which Switzerland could benefit. And do you know why our building in Vaduz is predestined for this goal?
Tell us why.
The headquarters of the First Advisory Group, one of the largest trust companies in Liechtenstein, was also located at Äulestrasse 74 in Vaduz. The company made a significant contribution to the innovative renewal and globalization of Liechtenstein’s financial center. This is also one of CV Labs’ declared goals. I consider the fact that we now house in the same building, as the First Advisory Group used to, to be a good omen.
What will happen at CV Labs Vaduz?
With the opening of CV Labs Vaduz we want do serve more of these companies (50+ located in Vaduz) and entrepreneurs and bring the community together in the Liechtenstein area, which has put itself on the map with advanced Blockchain and fintech regulations. The new co-working space in Vaduz follows CV Labs Zug’s business model and offers various services and events:
- Co-work: Shared and private offices as well as meeting facilities
- Events: Meetups, summits and startup competitions
- Education: Courses, certificates and content
- Community: Networking, social media marketing, blogs/vlogs
- Advisory: Consulting, incorporation, business modelling
- Excubate: Corporate innovation, corporate venture, co-creation
- Incubate: Funding, mentoring, alumni network
How will the exchange between CV Labs Zug and CV Labs Vaduz work?
The same people are working in Zug and Vaduz. In Liechtenstein, CV Labs will continue to build bridges between investors, startups and projects, governments and associations, science and research, service providers and corporates to contribute to a flourishing Blockchain ecosystem. At CV Labs Vaduz we can count on strong partners such as the first resident tenants eCredits, CoreLedger, Bitcoin Suisse and inacta, which launched together with us the labs. Our strong network of ecosystem partners consists of Liechenstein companies like Blockchain Büro, BWB Attorneys At Law, Ganten Group, Nägele Law, Niedermueller Attorneys and Mason Privatbank. The hub is also partnering up with the active associations in the crypto space Bitcoin Association Switzerland, Crypto Country Aassociation, Crypto Valley Association and Swiss Blockchain Federation. Those partners together will create a service provider network to support new companies to setup their business in Liechtenstein in a most efficient way.
Do you have international expansion plans?
We have two, three ideas. In Switzerland, the French-speaking part would certainly be worth considering. In Geneva, an extremely interesting hub is developing around the international organizations and the raw materials industry. And not to forget Libra. A bridge to Asia should also be considered. Many Swiss projects have a foothold in Singapore, which is the gateway to the Asian market with 3 billion consumers. This is particularly interesting for cryptocurrency projects. A second world region is the Arab island, especially Saudi Arabia and the United Arab Emirates. The states are in the process of bringing more and more administrative tasks and processes to the blockchain, and many investors are looking for thrilling blockchain projects. CV Labs could be an ideal bridge between the Crypto Valley and Dubai, for example. You see, CV Labs Vaduz was the first step of an international expansion.
About Ralf Glabischnig
Ralf Glabischnig is a founder and board member of Crypto Valley Venture Capital (CV VC) and co-founder of CV Labs Zug & Vaduz. He works as managing partner at inacta, Zug, and is a founding member of the Swiss Blockchain Federation as well as the Crypto Valley Association.
About Liechenstein
With 160 km2 Liechtenstein is the fourth smallest state in Europe. Despite its small size, the country has developed rapidly from an agricultural country to one of the most attractive and successful business locations in Europe. Its integration into European and international economic agreements, such as the EEA Agreement, the EFTA Free Trade Agreements, and the WTO, create optimal conditions for an export-oriented economy. As a modern economic center, Liechtenstein stands for innovation, development, and stability.
About CV Labs
CV Labs, a subsidiary of CV VC, is a Crypto Valley co-working hub in Zug, Switzerland and home to more than 130 blockchain companies as well as a blockchain startup incubation program. CV Labs co-working spaces provide a home and community centre for the 800+ Blockchain related companies with more than 4,000 employees in the Crypto Valley, that spans from Switzerland to Liechtenstein. The co-working hub offers variety of services, such as incubation for early-stage startups, excubation services for corporate clients, blockchain and entrepreneurship education modules, events and content marketing. In 2019 CV Labs also launched an incubation program for blockchain startups and opened a CV Labs in Vaduz.
