Austria is implementing an EU law to regulate the crypto market and will supervise the cryptocurrency market more strictly in the future. In the future, clear rules will apply to companies that want to issue and sell cryptocurrencies, which should increase protection for investors. The Financial Market Authority (FMA) is responsible for monitoring the rules. In the future, it will be able to grant licenses to crypto asset service providers in Austria.
“With this step, we are closing the door to the Wild West days of crypto assets by creating legal clarity and strengthening the integrity of the still young crypto assets market. Our goal is to position Austria as a reliable location for digital financial innovations and at the same time guarantee the protection of investors,” said Finance Minister Magnus Brunner (ÖVP) on Tuesday, according to a press release.
The European Union (EU) was the first major economic region to agree on the regulation of cryptocurrencies. The set of rules called “Markets in Crypto Assets” (MiCA) came into force in June 2023. The regulation contains rules for the public offering of crypto assets, their admission to trading, equity for issuers of crypto assets, the holding of an asset reserve for crypto assets, withdrawal and redemption options for retail investors, the provision of crypto asset services and measures to prevent and prohibit market abuse. It will apply in full from the end of 2024.
Cryptocurrency service providers with a license in Austria will be able to offer their services throughout the EU in the future. Previously, this required separate registration or authorization in each individual EU member state.
