How Austria regulates cryptocurrencies

This time we will take a look at the legal aspects of crypto regulation in Austria. Such an overview will surely be useful for both experienced businessmen and starting entrepreneurs in the crypto industry of Austria.

In the modern world, crypto regulation is a popular subject of discussion for financial authorities of many countries and jurisdiction types. In Austria, who has a leading position in the world of digital currencies in Europe, officials are considering the introduction of regulation of digital assets based on the principles of regulating trade for gold and derivatives.

Among other aspects, money laundering, financing illegal activities, and holding of an ICO are worrying the Austrian financial regulators. Authorities request that initial coin offerings are carried out in compliance with prospectuses approved by regulators. According to the expectations, investor’s protection should be enhanced by the process of preparing a prospectus that conforms to the rules.

Unlike Germany, which is already on the path of analyzing all ICOs, Austria has not started inspecting specifics. However, we can already see a common trend in the EU: countries are beginning to develop the new economy accommodative for the digital currency regulative framework.

  1. For now, Austria does not have a specific set of rules regulating business transactions involving cryptocurrencies. The country requests license obtainment from certain providers of financial services operating with digital currencies. Consequently, Austrian authorities established an advisory point dedicated to helping new fintech businesses that need to be authorized. To receive a detailed consultation on registering a cryptocurrency exchange with FMA, contact COREDO and we will be happy to assist.
  2. Violation of laws for financial services and security are subject to multiple kinds of sanctions. Therefore, it can be a useful step for financial services providers in the European market to order a legal due diligence from a specified fintech company like COREDO to avoid possible fines.
  3. Austria does not have a court dedicated specifically to resolving disputes on cryptocurrencies. Usually, a dispute between two entrepreneurs, or as it called a commercial dispute, is ruled by commercial courts.
  4. Generally, Austria’s legislation does not restrict ownership of cryptocurrencies. However, if digital currencies are used in commercial transactions or the exchange of cryptocurrency for local currency, a banking and payment license can be required. COREDO can help you obtain a payment license in Austria as well.
  5. As it often happens, security tokens are priced similarly to securities like bonds and stocks and are also viewed as transferable securities. Due to this reason, they are supposed to be authorized as regulated trading platforms or stock exchanges. Despite the non-existence of specific STO regulations right now, the situation can change soon. Specialists from COREDO can help you stay up to date by providing the latest novelties from the legislation sphere.
  6. General securities laws are typically applied to issuance and investment in Stablecoins. As for crypto assets distributed via Airdrops, the general laws on securities, commodities, and trade are applied.

Choose COREDO as your assistance for managing the legal component of your investment project in Austria.

Conclusion

Just like Switzerland or Malta, Austria is viewed as an attractive zone for developing cryptocurrency business. Many entrepreneurs seek to establish a cryptocurrency business due to favorable conditions in this industry that Austria offers. If you would like to make the process of establishing a crypto business in Austria trouble-free and quick, contact representatives of COREDO and arrange a personal consultation. We will guarantee a smooth registration of a cryptocurrency exchange with no confusion.