40 Crypto Firms Apply for Austrian License, 18 Get Tick of Approval

Austrian financial supervisory authority (FMA) today said it has received applications from 40 prospective digital assets providers, of which 18 entities were granted the regulatory registration.

Crypto firms operating in Austria have to apply for a license to the nation’s financial watchdog as the new Anti-Money Laundering (AML) Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) regulations came into effect. Although derivatives referencing cryptoassets would not fall under this Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term, they remain subject to ESMA’s current restriction and any future proposals by the FMA regarding the sale of these instruments to retail investors.

Until October 2019, crypto service providers had been operating under the transitory provisions set out in the country’s AML Act, which provides a set of rules for those operating a cryptocurrency-related business. Those wishing to continue providing their services in the rising crypto hub, following the expiry of the transitory period, are now required to apply for authorization with the FMA.

In addition to crypto-to-crypto and fiat-to-crypto exchanges, the new rules apply to digital wallet providers, market participants that “exchange one or more virtual currencies against one another, transfer virtual currencies or provide financial services for the issuance and selling of virtual currencies.”

Hefty Fines for Noncompliance

License applicants must show to the Austrian financial watchdog that they possess sufficient capability, coherence and solvency to run the business. The legal notice warns of administrative penalties for failure to comply with the provisions of the FMA rules.

In its capacity to supervise the financial market and enforcing compliance with rules and regulations, the Financial Markets Authority (FMA) of Austria will impose a maximum fine of €200,000 on cryptoasset-related businesses that fail to register with the country’s regulator.

“The FMA pursues a zero-tolerance policy in relation to money laundering and terrorist financing. In relation to the risks associated with virtual currencies, another loophole was closed last year with the introduction of the requirement for companies active in this area to register,” the watchdog said.

The FMA clarified that the majority of digital-asset providers applied for its license to operate electronic wallets and exchange platforms.