Austria plans cryptocurrency and ICO regulations due to the increasing concerns in relation to the use of cryptocurrencies as means for money laundering. Reportedly, the country intends to use the existing framework for the gold and derivatives trading as a model for the upcoming cryptocurrency regulations.
26 February, AtoZForex – Joining the number of other countries, Austria has signaled it plans to regulate cryptocurrencies. Reportedly, the country intends to use the existing framework for the gold and derivatives trading as a model for the upcoming cryptocurrency regulations.
Austria Plans Cryptocurrency and ICO regulations
The key concern of Austrian government is limiting the use of cryptocurrencies as means for money laundering. In the same way, the government wants to widen its oversight measures for the traditional financial products to the cryptocurrencies. Finance Minister Hartwig Loeger was quoted as saying:
"Cryptocurrencies are significantly gaining importance in the fight against money laundering and terrorism financing. We need more trust and security."
Mr. Loeger has also mentioned several measures that the Austrian government plans to execute. These include including requiring cryptocurrency market participants to identify all trading parties. Another possible measure is to inform the government about the trades of €10,000 ($12,300) or more.
Austria ICO Regulations
It is also known that the regulation will cover the Initial Coin Offerings (ICOs). According to Mr. Loeger, the officials will apply existing rules in regards to the market manipulation, insider trading and front-running. Moreover, the ICO firms will need to submit “digital prospectuses” to the key financial regulator of the country, Financial Market Authority (FMA).
The remarks of the Austrian financial minister emerge following the report that the Austrian government is looking for the suspects in Bitcoin scam by company Optioment. It appears that the scam might have resulted in a total investor loss of up to $115 million.
In addition to abovementioned, Mr. Loeger has stated that the European Union needs to adopt a set of cryptocurrency regulations. It might become the reality soon since the European Commission has announced that the ECB and some of the regulators will meet next week to discuss the cryptocurrency regulation matter.
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