Austria Planning Cryptocurrency and ICOs Regulations

Austria has joined the list of countries planning to regulate cryptocurrency and will use as a model existing rules for the trading of gold and derivatives.

Austria cryptocurency ico regulations

The government’s central concern is curbing the use of cryptocurrencies for money laundering, Bloomberg reports. Likewise, it wishes to extend oversight measures for traditional financial products to crypto assets.

“Cryptocurrencies are significantly gaining importance in the fight against money laundering and terrorism financing,” Finance Minister Hartwig Loeger was quoted as saying. As a result, he went on to say, “We need more trust and security.”

Loeger outlined several measures the government plans to implement, including requiring cryptocurrency market participants to identify all trading parties and to disclose trades of €10,000 or more to the government’s financial intelligence unit.

The regulation will also cover initial coin offerings (ICOs), Loeger said. The government will apply existing rules regarding market manipulation, insider trading and front-running, and organizers will be required to submit “digital prospectuses” to the country’s Financial Market Authority (FMA).

The finance minister’s statements come on the heels of a report that the Austrian government is seeking suspects in an alleged bitcoin scam by a company called Optioment, which may have resulted in investor losses of up to $115 million.

Loeger also suggested that the European Union should implement cryptocurrency regulation. This may well come to fruition as the European Commission announced Thursday that top central bank and market supervision figures in addition to unidentified “market players” will meet next week to discuss the matter.

Austria Planning Cryptocurrency and ICOs Regulations

Related articles

crypto curency derivatives

EU Markets Watchdog ESMA Toughens Rules on Crypto Derivatives

The European Securities and Markets Authority (ESMA) has toughened its stance on cryptocurrency derivative contracts. In an announcement Tuesday, the EU markets watchdog said it has agreed to temporarily adjust the leverage limit for cryptocurrency-related “contracts for difference” (CFD) products to 2:1 – a move that will require retail investors to initially pay at least […]

bitcoin price

Bitcoin Price Soars Above $11,600 Amid Strong Korean Demand

Bitcoin Price Soars Above $11,600 Amid Strong Korean Demand Bitcoin’s recovery continues with prices passing $11,600 in the morning’s trading. At the time of writing, the bitcoin global average was at $11,462. Notably, valuations are higher over on data provider CoinMarketCap, where high prices in South Korea seem to be inflating the figures. At press […]

Leave a Reply

Your email address will not be published. Required fields are marked *

*