Crypto firms in Austria can be fined up to 200,000 EUR (above $221,000) starting from tomorrow if they do not operate with FMA licenses.
January 9, 2020, | AtoZ Markets – Austria, one of the more liberal countries when it comes to crypto trading, will require all operators within the country to register with the Financial Markets Authority (FMA). License applications must prove the business has sufficient liquidity, resources and performs due diligence, or face the hefty penalty fine.
Crypto firms in Austria must register with FMA
The Austrian FMA has enforced the rules in a recent legal notice. The new regulations will affect activities related to:
‘”the issuance and selling of virtual currencies as well as transferring them, trading and exchange platforms for them (irrespective of where virtual currencies are to be exchanged between one another or for legal tender payment instruments or vice versa) as well as providers of custodian wallets.”
The requirements may be especially hefty for small-scale exchanges and brokerages operating in the country. Austrians have access to some of the leading European exchanges, including Kraken and Bitstamp. These crypto exchanges have already achieved the highest level of compliance. Bitpanda, the brokerage company, has also operated with a money-manager license.
The exact number of crypto operations in Austria is unknown, as small-scale brokerages have existed for years. International exchanges, which are open to EU-based traders, may also have to comply with a new set of rules. Moreover, they must register with both local country-specific authorities and on the EU-wide level.
AMLD5 comes with much stricter regulations
Exchanges are already performing some of the required operations, such as customer screening, or KYC when taking in new clients. Other requirements include a transparent data on company ownership. Firms will have to supply evidence they are not working with sanctioned territories. They must also be ready to provide transaction and money checks.
The changed regulations within the EU will mean additional reporting requirements for exchanges based in Malta, where Binance built its new central.
What do you think about the Austria crypto firms FMA licenses requirement? Share your thoughts in the comments section below!