FX.co ★ Austria to step up supervision over crypto industry

Austria’s Ministry of Finance is keeping a close watch on the financial and cryptocurrency sectors. However, Vienna is going to step up oversight of the digital asset market. So, cryptocurrency owners should be vigilant for crackdowns.

According to the Austrian Ministry of Finance, the country is implementing EU regulations on the cryptocurrency market. Austrian authorities intend to tighten control over firms that issue and sell digital assets.

The ministry notes that the Financial Market Authority (FMA) is responsible for ensuring compliance with the rules.

Finance Minister Magnus Brunner stated that the FMA will be able to issue licenses to cryptocurrency service providers in the near future. “This step closes the door on the Wild West of digital assets, creating legal clarity and strengthening the integrity of the virtual currency market. Our goal is to position Austria as a reliable place for digital financial innovations while ensuring investor protection,” Mr. Brunner specified.

This measure was adopted following the introduction of the Markets in Crypto-Assets regulation, approved by the European Council in June 2023. The document encourages innovation while ensuring fair competition and guarantees retail investor protection. Its full implementation will begin on December 30, 2024. The regulation includes rules for the issuance of digital assets, their admission to trading, and capital requirements for asset issuers. Besides, it establishes reserves for digital currencies, offers cancellation and redemption options for retail investors, and implements measures to prevent market fraud.