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Malahov remembers founding Aeternity with the equivalent of 50,000 Swiss francs in Ethereum.

PlusLiechtenstein’s quaint valleys and fairytale castlesare enough to attract any entrepreneur.

“It's a beautiful valley in the Alps, today is very cloudy, but usually it's beautiful," says Malahov.

But making itenticing for cryptocurrency and blockchain businesses to set up shop and trade appears to only one part of Liechtenstein’s plans.

Liechtenstein's Crown Prince Alois has been reaching out to the blockchain community. Credit: NICHOLAS RATZENBOECK/AFP/Getty Images.

Bitcoinstein

Liechtenstein is a member of the European Economic Area, but not the European Union.

The advantage being that financial services based there, including those working on cryptocurrencies and blockchain, can skirt some of the most onerous EU regulations while still trading across the continent because of financial ‘passporting’ rules.

It’s part of the reason why Liechtenstein’s banks are still handling crypto investments on behalf of their clients, and even offering advice on initial coin offerings, while the rest of Europe’s financial sector has shied away from digital currencies.

Crown Prince Alois last month even implied that his royal family could soon use blockchain to manage the day-to-day administration of their monarchy , andhe’s made mention of diversifying his family’s assets into digital tokens.

Alois's overt support is already having an impact on the ground.

Monthly blockchain meetups in the capital of Vaduz now draw hundreds of attendees, from newly-founded crypto startups like Chainium and Vimana – not bad for a country of Liechtenstein’s size.

Malahov believes the future of blockchain businesses in Liechtenstein is bright, he’s even developing a co-working space which could be the principality’s first dedicated entirely to blockchain.

There’s still a way to go, talent is obviously a challenge in a country of this size, as is traditional venture funding.

But for crypto companies one thing’s for sure, the alpine forests of Liechtenstein have never looked so appealing.

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