The growth of decentralized finance (DeFi) and real-world asset (RWA) tokenization presents unique regulatory challenges in Switzerland, Liechtenstein, and the EU. In DeFi, the absence of centralized intermediaries complicates compliance with traditional regulatory frameworks. Switzerland employs a principle-based approach, applying Anti-Money Laundering (AML) rules and investor protection standards to balance innovation with risk mitigation. In the EU, efforts to regulate DeFi are advancing under the Markets in Crypto-Assets (MiCA) framework, though the status of fully decentralized platforms remains unclear, leaving a compliance gray area.

RWA tokenization is transforming the ownership and trading of real estate, precious stones, and both physical and digital art. Switzerland often treats tokenized assets under securities law, requiring issuers to ensure transparency, investor protection, and secure custody. Liechtenstein’s Blockchain Act offers flexible legal wrappers for tokenized assets, while the EU similarly emphasizes compliance with securities and transparency regulations. Use cases for tokenization range from fractional ownership of real estate to digitized rare art collections, enabling new opportunities for investors but demanding careful legal structuring.

Both DeFi and RWA tokenization highlight the need for tailored regulatory frameworks that foster innovation while ensuring market integrity, transparency, and consumer protection across jurisdictions.