Austrian Crypto Companies To Face Fines If They Break Regulatory Rules

Austria has introduced a new law against money laundering. In this regard, since this year cryptocurrency companies operating in Austria must apply for a license from the Financial Markets Authority (FMA). License applicants must show the Austrian financial watchdog that they have sufficient ability, consistency and solvency to conduct a cryptocurrency business.

An attempt to sell digital assets without a license to citizens of the country will cost the legal entity a fine of 200 thousand euros. The new rules are part of the implementation of the fifth Anti-Money Laundering Directive (AMLD5), which gives a broad definition of crypto assets and qualifies them as “financial instruments”. By the definition, strict rules apply to security tokens as well.

Strengthening the rules for crypto business in Austria makes it almost impossible to develop, since exchanges and startups are required to disclose information about the traders and major transactions.

Image courtesy of Coindoo

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